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November 20, 2017

Wells Fargo cuts jobs at card-processing unit

Wells Fargo & Co has axed approximately 50 jobs as part of an ongoing restructuring of its credit-card processing business that focuses on small-business customers.

The layoffs were made in the sales department of the Wells Fargo Merchant Services, the bank’s joint venture with First Data Corp (FDC).

The San Francisco-based bank the move to enable it better align the number of employees in the business with current volumes.

Wells Fargo spokeswoman Per Sara Hassell said these redundancies remain unrelated to the company’s digitisation drive scheduled to start next year in the form of a mobile app for the small-business merchant-services customers.

To minimise the layoffs impact, the bank is offering new jobs to the affected employees within company.

Wells Fargo Merchant Services collect a fee for transaction processing and a commission from First Data on equipment leases and sales.

In August 2017, a federal case was filed in the US District Court Eastern District of New York against the company, allegedly charging customers unauthorised and excessive fees for its services.

Following the breakout of its questionable sales practice, Wells Fargo reduced substantial number of positions in the business and closed branch offices to deal with increasing litigation costs.

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