Shifting customer needs and market dynamics have prompted Wells Fargo to close its servicing site in Milwaukee, Wisconsin, thus reducing the bank's workforce by 1,000, according to a statement from Wells Fargo.
Wells Fargo cited the improving economy in the last two years along with steady declines in delinquencies and fewer borrowers in need of mitigation options to avoid foreclosure as contributing factors to the closing of the Milwaukee office. The bank said the closing will be effective in late July.
"Any decision to reduce our workforce is difficult and made with great concern for the team members who are affected," Wells Fargo spokesman Tom Goyda said. "We made this announcement today so our team members will have several months to plan for this change. The team members affected by these changes have each been an essential part of our success. We will do everything we can to make them aware of other job opportunities within Wells Fargo, and support them as they consider the next phase of their careers. In the meantime, we remain committed to helping customers purchase or refinance their homes and offering solutions for borrowers with financial hardship who need assistance."
The San Francisco-based megabank said that the closing of the Milwaukee office will have no impact on its banking stores and other lines of business such as business and commercial banking or the wealth management and brokerage operations serving the bank's customers in Milwaukee.
Wells Fargo has about 265,000 employees, including about 48,000 in the bank's home lending business.