Wells Fargo’s CEO Says AI Will Erase Tens of Thousands of Jobs. Here’s Why He’s Still Not Worried About Your Wallet

Bank CEOs usually speech astir AI the mode they speech astir weather. Something happening, worthy mentioning, nary request to alarm anyone. Wells Fargo (NYSE:WFC) main Charlie Scharf went the different mode connected CNBC's Squawk connected the Street this morning, saying automation volition destruct tens of thousands of positions astatine the bank, past instantly arguing the American user is beardown capable to sorb the blow. Both halves of that statement substance for anyone holding the stock.

Wells Fargo trades astatine $88.39 arsenic of this writing, up 14% implicit the past twelvemonth and down 7.15% twelvemonth to date. The marketplace is treating Scharf's comments arsenic absorption doing precisely what absorption is expected to do.

The Job Cut Admission

Scharf did not hedge. "Our headcount since I've been astatine the institution is down 79,000 people. We're down 15,000 implicit the past year, 7500 implicit the past quarter. And that has thing to bash with AI. But erstwhile we deliberation astir the quality to automate roles... it's going to effect successful tens of thousands of less positions."

The favoritism matters. The 79,000 jobs already gone were a restructuring story. Wells Fargo has chopped headcount for 24 consecutive quarters, ending Q2 2026 astatine 197,000 employees. The AI question is simply a second, abstracted chopped inactive ahead. Meanwhile, productivity gains are already showing up successful the numbers.

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Q1 2026 EPS was $1.60 connected gross of $21.446 billion, and Q2 diluted EPS jumped to $2.00, up 25% twelvemonth implicit twelvemonth portion headcount fell 7%. Return connected tangible communal equity deed 17.7%, close astatine the apical of the raised 17-18% medium-term target. Fewer people, much money, higher returns. You tin spot the strategy successful the Q1 2026 8-K without squinting.

The Catch He Was Willing to Name

Then Scharf said the happening astir CEOs skip. "I bash judge that this is simply a large happening for the economy, but the clip periods mightiness not lucifer up, the accomplishment levels mightiness not lucifer up. And truthful we each person to enactment truly hard successful backstage manufacture and with authorities to fig retired however we're going to span that gap."