Wells Fargo to close consumer finance offices, including one in Austin
Banking giant Wells Fargo & Co. is shutting down its 638 U.S. consumer finance offices, including one in Austin, resulting in the loss of 3,800 jobs nationwide.
The Wells Fargo Financial office in Austin is at 9003 Waterford Centre Blvd., near U.S. Highway 183 and MoPac Expressway. Wells Fargo Financial has seven other offices in Texas. It’s unclear how many people in Austin will lose their jobs.
Of the 14,000 employees at Wells Fargo Financial, about 2,800 positions will be eliminated over the next 60 days, the company says, and another 1,000 positions likely will be cut over the next 12 months. The remaining Wells Fargo Financial employees will be shifted to other Wells Fargo businesses.
Wells Fargo says it’s exiting the subprime mortgage sector; the rest of the consumer and commercial loans offered through Wells Fargo Financial will be folded into other business units.
“Our network of U.S.-based consumer finance stores, which have historically operated as an independent sales channel from our bank operations, have served customers well for more than 100 years,” says David Kvamme, president of Wells Fargo Financial, “but the economics of a separate Wells Fargo Financial channel are no longer viable, especially now that our customers have access to the largest banking and mortgage store network in the United States.”
The company says the shutdown of Wells Fargo Financial won’t affect the number of community banking or home mortgage branches operated by Wells Fargo.