Triad spared from Wells Fargo’s N.C. job cuts
Winston-Salem and the Triad have been spared a second time from Wells Fargo & Co.’s decision to eliminate an additional 177 jobs within its mortgage divisions in Charlotte and Raleigh.
The bank confirmed Thursday that it is cutting 150 jobs in Charlotte and 27 in Raleigh, as well as ending 1,865 jobs companywide, as part of its continuing response to lower consumer demand for mortgage services, particularly refinancing. Affected employees were given a 60-day notice Wednesday.
On Aug. 21, the bank said it was cutting 284 jobs in Charlotte and 48 in Raleigh as part of eliminating 2,323 jobs companywide. Most of the affected employees in both decisions are in the bank’s consumer mortgage loan-processing unit.
“There are no impacts in the Triad West region,” Wells Fargo spokeswoman Christine Shaw said Thursday.
Bank officials refer to Triad West as a 26-county region, of which Forsyth County is the largest employment puzzle piece. The bank has about 4,100 jobs in the region.
By comparison, Wells Fargo currently has about 20,500 employees in the nine-county Charlotte area.
The staff reductions come as the bank reports that higher interest rates are resulting in lower demand among homeowners for refinancing.
Bank of America Corp. has cut more than 2,000 mortgage jobs companywide in recent months.
Shaw said the job cut decisions are another part of the bank “evaluating the current market and our business needs to better align and increase the efficiency of our organization.”
The percentage of mortgage applications stemming from refinancing has been falling for Wells Fargo since the fourth quarter. Refinancings made up 54 percent of mortgage applications in the second quarter, down from 69 percent a year ago, the bank reported.
“Industry trends suggest that refinance activity has recently fallen to about 50 percent of application volume and are projecting that refinance activity could continue to fall further in the coming months,” Wells Fargo spokesman Josh Dunn said Aug. 21.
According to Associated Press reports, the bank is eliminating another 332 jobs in the Minneapolis-St. Paul area of Minnesota and 176 jobs in Tempe, Ariz.