Wells Fargo has predicted more job cuts across its workforce in 2026, putting AI first as a top priority for its future investments. The banking industry has seen a considerable number of changes this year, embracing artificial intelligence with ease. The technology has certainly made an impressive splash this year, urging businesses to automate their process and rely less and less on human labor. This has resulted in a shift in the make-up of the workforce, leading businesses to cut their numbers and further invest in AI. Wells Fargo’s 2026 layoffs are a direct result of the shift and add to global workers’ woes over the shift in business prioritization.
The Wells Fargo job cuts in 2026 are a result of the company’s plans to invest more heavily in AI and the efficiency gains promised by the tech. (Image: Freepik)
Wells Fargo Job Cuts in 2026 Confirmed: The AI Apocalypse Rages On
Wells Fargo has not put a number on its plans for efficiency cuts, but the company has made its stance on the matter clear: more job cuts are on their way. The financial institution had 210,000 employees as of September 30, 2025, and it’s unclear how many of them will be let go. The company added that the restructuring layoffs would have been necessary even apart from its AI ambitions, but the technology only gives the company more reason to shrink its workforce.
“We have gone through the budgeting process, and even pre-artificial intelligence, we do expect to have less people as we go into next year,” CEO Charlie Scharf was heard saying. Earlier this week, the CEO also revealed that he expected to see severance expenses rise in its current fourth quarter, further confirming that the company is set on downsizing.
Why Is Wells Fargo Reducing Its Staff?
The Wells Fargo cuts are aimed at efficiency gains, with the company hoping to gradually roll out the tech across its operations. Addressing some employee concerns, he added that AI wouldn’t replace its human labor force entirely, but it is set to change how their work is carried out.
According to Reuters, at a recent Goldman Sachs conference, CEO Scharf was heard saying, “Gen AI tools within our engineering workforce were 30% to 35% more efficient in terms of writing code today. We’ve not reduced the number of people we have coding today, but we’re getting a lot more done, and that’s real efficiency.”
The company also indicated that it wasn’t looking at another popular trend of growing its ranks through acquisitions unless they promised strong financial returns and value for investors. The CEO clarified that the company had no interest in the process that would only add “a little bit of earnings to the company,“
The Banking Industry Has Been Quick to Snap Up the Benefits of AI
The tech industry has been an obvious leader in the adoption of AI technology, but financial institutions have also caught up quickly. Jamie Dimon, CEO of JPMorgan Chase, has been very vocal about AI’s potential to change and eliminate jobs. The company’s AI blueprint has continued to expand, extending towards the deployment of agentic AI forces across its workforce. With its tough stance on job-hopping and its restrictive 5-day office mandate, the company has tightened the reins on its workers simultaneously.
According to Reuters, the Bank of America has shared plans to allocate $4 billion into new technological capabilities from its $13 billion tech budget. This means more room for AI, after the bank has already seen “significant gains” in productivity from its deployment. BNY Mellon is another financial institution that has already successfully deployed AI agents within its workforce, automating some key processes within its operations. Considering these success stories, it is no surprise that Wells Fargo is reducing staff and cutting jobs in 2026 in favor of technology.
Careful Adoption of AI Is Essential
It is also important to note that the adoption of AI has not been without its challenges. The Commonwealth Bank of Australia had a different experience with its AI investments, backtracking on its decision to fire 45 workers who were initially thought to have been made redundant due to AI. The technology is here, and it is certainly here to stay, but businesses also need to be careful about their strategy before any major changes are made.
AI has many impressive qualities to offer, but rushing headlong into adoption with a well-laid plan and safeguards in place may backfire. Certain states have also begun to add regulations governing AI use, which businesses must comply with, making it an investment worth pursuing with caution.
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