Wells Fargo CEO Charlie Scharf predicts more job cuts and higher severance expenses in the fourth quarter, citing the impact of artificial intelligence on the bank’s operations. AI is expected to change work processes and boost efficiency, leading to workforce reductions. The bank plans to gradually implement AI over the next year.

Scharf emphasized that AI will not replace humans entirely but will alter how work is done. Wells Fargo had 275,000 employees in 2019, but that number has decreased to over 210,000 as of September 30, 2025. The CEO highlighted the increased efficiency of AI tools in the bank’s engineering workforce, which has not led to a reduction in coding staff but has significantly improved productivity.

Following the lifting of a $1.95 trillion asset cap by the U.S. Federal Reserve, Wells Fargo is poised for expansion under CEO Scharf. While analysts and investors anticipate growth, Scharf emphasized the importance of pursuing acquisitions with strong financial returns and strategic value. The bank is focused on making sound investment decisions rather than pursuing acquisitions solely for earnings growth.

Read more at Yahoo Finance: Wells Fargo expects more job cuts, will roll out AI gradually in 2026