NORTH BAY -- Wells Fargo & Company announced the restructuring of the Wells Fargo Financial division, which will close 638 Wells Fargo Financial stores in the U.S. including an office in Santa Rosa and Fairfield.
The company expects to see 2,800 positions eliminated in the next two months and another 1,000 in the next year.
There are currently 14,000 positions at Wells Fargo Financial, and the remaining people will be moved to other Wells Fargo businesses.
“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,” said 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.”
With the plan, Wells Fargo is leaving the non-prime portfolio mortgage loans origination business.