Banks have been trying to get bank consumers to go electronic for some time now. The reason is that payroll is likely a bank’s largest expense followed by real estate. Much of the need for labor lies in handling cash transactions. Cash transactions for banks are onerous as much of it cannot be automated. Consumers, however, have been resistant to using technology for many of their banking transactions. But Covid-19 may have changed all that.
Although not talked about much, many companies are looking at both shedding troublesome employees and reducing their workforces blaming both on the pandemic emergency.
In addition to the economic chaos the Covid-19 emergency has caused worldwide, many companies are using the emergency to realign their operations. Many of the changes are workforce related. Many workers will soon, if they haven’t already, learn that their jobs are no longer there.
In the case of banks, the pandemic has offered them the opportunity to force consumers to bank electronically. This allows them to reduce the number of employees they need in order to operate. A reduced workforce also results in eliminating floor space by closing branches across the country.
In downtown Orlando, the banks have kept their branches semi-closed by offering reduced hours of operation, closed lobbies and appointment only visits. However, in the case of Wells Fargo, its branch has been closed since the pandemic emergency was first declared.
On Thursday, Bloomberg Law posted an article about Wells Fargo cutting “thousands” of jobs. Bloomberg cites anonymous sources as its source for the article. According to Bloomberg, Wells Fargo “may ultimately eliminate tens of thousands of positions”.
Wells Fargo has not confirmed the looming layoffs.
However, the signs across that banking industry suggests that banking job cuts are on the horizon, notwithstanding the promise banks made to keep jobs during the pandemic.