Wells Fargo Expects Severance Costs Of $750M-$1B In Q4: Report

On Investor Day yesterday, Wells Fargo & Co WFC CEO Charlie Scharf reportedly disclosed that he expects higher-than-anticipated severance expenses between $750 million and a little less than $1 billion in Q4.

"We are continuing to focus on efficiency with turnover dropping, unfortunately, we're going to have to be more aggressive about our own internal actions," said CEO Scharf, reported Reuters.

Also, Scharf added that the economy is expected to be strong despite higher interest rates and economic downturn woes, but he is cautious going into 2024.

Also, the CEO is hopeful about credit card growth picking up and says the consumer is still resilient, as per the report.

The bank had potential credit losses on office real estate for $359 million in Q3, bringing total allowances to $2.6 billion for the first nine months of 2023.

Last month, WFC laid off fewer than 50 bankers from its corporate and investment bank after the San Francisco-based lender warned that its headcount could decline further to become more efficient, per the report.

Last week, an employee of WFC reportedly initiated a class-action lawsuit against the bank, accusing the bank of not providing overtime pay to numerous branch workers across the U.S.

Price Action: WFC shares are trading higher by 0.02% at $44.50 premarket on the last check Wednesday.

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