Wells Fargo to lay off managers in shakeup of community banking unit

Wells Fargo to lay off managers in shakeup of community banking unit

CHARLOTTE, NC (Deon Roberts/The Charlotte Observer) - Wells Fargo said Thursday it plans to eliminate a layer of management across its community banking unit, a move expected to result in layoffs.

Charlotte-based community banking head Mary Mack told employees in a memo Thursday the company is consolidating its regional president and area president roles into a new position – region bank president. The move will shrink 160 current positions to 90, Wells Fargo spokeswoman Bridget Braxton told the Observer.

"So, there will be displacements," Braxton said.

In her memo, Mack said the new structure creates "one role that is clearly defined, provides more consistency across Regional Banking, reduces the levels of management and tightens controls."

"We truly believe this is the right go-forward structure for Community Banking as this change will allow us to be more streamlined, efficient, and consistent across our markets," Mack said.

It's the latest shakeup in less than a week at San Francisco-based Wells Fargo, which since September has been reeling from a scandal involving unauthorized customer accounts. On Monday, the company announced changes to its Business Banking Group, which is going to seven U.S. regions from three previously.