Wells Fargo CEO warns of severance costs as layoffs loom

Charlie Scharf, CEO, Wells Fargo, speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023. speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023. 

Patrick T. Fallon | Afp | Getty Images

Wells Fargo CEO Charlie Scharf said Tuesday that low staff turnover means the company would likely book a large severance expense in the fourth quarter.

“We have seen turnover come down and so because of that, we’re likely going to have some more severance than we otherwise would have anticipated,” Scharf said during a New York conference hosted by Goldman Sachs.  

“We’re looking at something like $750 million to a little less than a billion dollars of severance in the fourth quarter that we weren’t anticipating just because we want to continue to focus on efficiency,” Scharf said.

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