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SummaryCompaniesAI expected to drive some workforce reductions, Scharf saysAsset cap removal allows Wells Fargo to expand NEW YORK/TORONTO, Nov 5 (Reuters) - Wells Fargo (WFC.N), opens new tab CEO Charlie Scharf said on Wednesday he expects the U.S. bank's workforce to decline further as it focuses on efficiency. "It's likely we'll have less headcount as we look forward ... we'd like to do much of it through attrition as possible," Scharf said in an interview, noting the bank had 275,000 employees when he joined in 2019 and a little over 210,000 currently. The U.S. Federal Reserve removed a $1.95 trillion asset cap on Wells Fargo in June, removing a major penalty for the bank's fake-accounts scandal and opening the door to growth. At the same time, the bank is focused on becoming more efficient and cutting expenses. Advertisement · Scroll to continueReport Ad "Headcount is the outcome of the conversations that we have about 'we're way too inefficient, we're way too bureaucratic, we have way too many processes inside the company that don't add value,'" Scharf said. AI TO DRIVE SOME JOB CUTS Artificial intelligence could also drive some workforce reductions. "The opportunities that exist in AI are very significant, and anyone who sits here today and says that they don't think they'll have less headcount because of AI either doesn't know what they're talking about or is just not being totally honest about it," he said. After regulators lifted the seven-year asset cap, the fourth-largest U.S. lender has more freedom to expand through acquisitions. Advertisement · Scroll to continue Item 1 of 2 Wells Fargo CEO Charlie Scharf speaks during an interview at The Clearing House conference in New York City, U.S., November 5, 2025. REUTERS/Brendan McDermid[1/2]Wells Fargo CEO Charlie Scharf speaks during an interview at The Clearing House conference in New York City, U.S., November 5, 2025. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab "We don't feel the pressure to do any M&A whatsoever ... We have amazing opportunities in every one of our businesses, we have scale in everything that we do," he said. Still, Wells Fargo could be interested in buying another lender at "at the right price" in appealing geographies, he said, without naming the areas. Payments and wealth management are other areas in which the bank could add capacity, he said. Scharf noted the bank's assets exceed $2 trillion, after the cap was lifted. "We now can grow our checking accounts, we can grow deposits alongside that, we can grow the rest of our lending products ... literally every one of the businesses we have plans to grow utilize the balance sheet," he said. The bank's stock jumped in October after its profit beat expectations and it lifted its target for return on tangible common equity to 17% to 18% over the medium term, compared with earlier expectations of 15%. Scharf has previously said he aims for Wells Fargo to become the top U.S. consumer and small business bank and wealth manager, as well as a top-five U.S. investment bank. Analysts and investors expect Wells Fargo to move swiftly on its expansion plans under Scharf, who took charge in 2019, months after the bank's fake-accounts scandal drew public outrage and billions of dollars in fines. "We think (our future) is going to be extremely bright, with or without something that's inorganic," he said. Reporting by Lananh Nguyen in New York, Nivedita Balu in Toronto and Pritam Biswas in Bengaluru; Editing by Rod Nickel Purchase Licensing Rights Lananh NguyenThomson ReutersLananh Nguyen is the U.S. finance editor at Reuters in New York, leading coverage of U.S. banks. She joined Reuters in 2022 after reporting on Wall Street at The New York Times. Lananh spent more than a decade at Bloomberg News in New York and London, where she wrote extensively about banking and financial markets, and she previously worked at Dow Jones Newswires/The Wall Street Journal. Lananh holds a B.A. in political science from Tufts University and an M.Sc. in finance and economic policy from the University of London.EmailXInstagramLinkedinNivedita BaluThomson ReutersNivedita Balu is a correspondent for Reuters based in Toronto, where she reports on Canadian banks and financial services. She previously covered U.S. tech, media and telecom companies, and consumer and retail companies in Bengaluru.EmailXLinkedin
