Wells Fargo cuts 1,900 jobs as refinancings slow

Reuters

SAN FRANCISCO (Reuters) - Wells Fargo & Co <WFC.N> said on Thursday it is shedding about 1,900 jobs, or less than 1 percent of its total workforce, as mortgage refinancings slow.

The San Francisco-based lender said notices went out March 23 giving the employees 60 days to find new jobs. Some will be reassigned in the company, spokesman Jason Menke said.

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A majority of the jobs were temporary, created last year when refinancings surged due to record-low interest rates.

"They were hired during the last several months to assist us with application volumes," Menke said. "We had seen a significant increase in demand for mortgage refinancings throughout 2010."

"Interest rates were favorable by historical standards," Menke said. "Interest rates have edged up a bit. That's part of it."

The layoffs are occurring in Wells Fargo locations across the United States, Menke said, and affect about 3 percent of Wells Fargo's total mortgage staff of 52,000.

(Reporting by Philipp Gollner; Editing by Phil Berlowitz)