Wells Fargo To Shutter 450 Branches, Slash Expenses By $4B
Wells Fargo’s national footprint is about to get much smaller. The San Francisco-based bank will shut down 450 branch locations within the next two years and cut $4B in expenses by 2019, the Bay Area News Group reports. The bank has been dealing with the fallout related to its scandal over employees opening 2.1 million accounts without customers' permission.
Wells Fargo has already reduced its real estate by 22M SF since 2009. Wells Fargo CEO John Shrewsberry told investors Thursday the bank would reduce its space by another 2M SF by year’s end. That includes the closure of 200 branches in 2017. Upward of 250 branches will close in 2018. The company expects to save $170M/year through branch closures.
The bank is eyeing digital and paperless branches. It also has been opening branches of 3,500 SF or smaller or 2K SF or smaller.