Skip to main content

Wells Fargo cuts 161 Minnesota jobs, blames re-fi downturn

  • Author:
  • Updated:
    Original:

Wells Fargo is laying off 161 mortgage employees in the Twin Cities, part of a national job slashing effort that was announced on Wednesday.

The Business Journal reports that the San Francisco-based bank notified 2,323 employees of the decision. The laid off workers got a 60-day notice and will be eligible for tenure-based severance if the bank can not find them work in other areas of the company.

Wells Fargo laid off 700 mortgage workers earlier this month, but the metro area was spared in that round of cuts.

In DesMoines, 87 were laid off, according to the DesMoines Register. Wells Fargo employs about 13,500 in the Des Moines region, where its home mortgage unit is based. It is the area's largest private employer.

A spokeswoman for the bank said that the slowing consumer demand for mortgage refinancing led to the staff trimming. Higher interest rates have made refinancing less appealing to homeowners. Interest rates on 30-year fixed mortgages have inceased from below 3.5% last spring to about 4.5% today, according to Bankrate.com.

"After evaluating the current market and our business needs, we are reducing staff to better align and increase the efficiency of our organization." Wells Fargo spokeswoman Peggy Gunn said in a statement to the Business Journal.

Wells Fargo's share of the mortgage market has grown dramatically in recent years and the bank now funds about a quarter of all the home loans in the U.S.

Next Up

image

Fatal crash under investigation on Hwy 62 in Mendota Heights

The Minnesota State Patrol is investigating the crash near Dodd Road.

Pixabay bike wheel

Driver strikes 5 bicyclists near Mapleton

The Sheriff's Office has indicated that those injured were children.

Screen Shot 2020-04-30 at 3.13.52 PM

The former Bachelor Farmer space is sold in Minneapolis

A new restaurant is expected to open next year.

flooding on Interstate 90

Supercharged atmosphere causing more mega-rain events

There could be a mega-rain event Saturday-Sunday in Minnesota, Wisconsin and/or Iowa.

9Rhiw3Tw

Massive Burnsville landfill expansion nears final approvals

The City of Burnsville and the Minnesota Pollution Control Agency are accepting public feedback on the proposal.

Screen Shot 2022-08-05 at 2.35.39 PM

Kyle Rittenhouse attorney to defend accused Apple River killer Nicolae Miu

The attorney who helped Kyle Rittenhouse be acquitted of all charges is defending the alleged Apple River mass stabber.

Screen Shot 2022-08-05 at 7.55.41 AM

Minneapolis police trying to ID pair in connection to fatal shooting

Police say the two people pictured are connected to the fatal shooting of Ivan Redday last month.

ambulance

17-year-old girl killed in southern Minnesota crash

The crash happened early Thursday morning near Lake Crystal.

Tim Gannon

Ex-Brooklyn Center police chief sues city over resignation

Tim Gannon alleges he was forced to resign following the fatal shooting of Daunte Wright.

boat, boating, lake

Men injured after boat crash sends propeller spinning onto craft

The motor reportedly flew out of the water and severely injured two men on the boat.

tunnel-g713f450fe_1280

Officials investigating possible spill near Enbridge pipeline in Wisconsin

It comes as another water spill is being reported at Enbridge's Line 3 pipeline in Minnesota.

Related