Eighty-seven Wells Fargo & Co. team members in Greater Des Moines received notice today that they would be laid off as part of a companywide reduction of 2,323 workers.
The reduction in workforce is due to lower demand for mortgage refinancing, said Angela Kaipust, a company spokeswoman. “We are committed to retaining as many as we can by helping them find other opportunities within the company,” she said.
The 87 layoffs announced today are in addition to 58 positions that Wells Fargo eliminated in Des Moines last month due to slowing refinance activity. Refinance activity, which had made up about 70 percent of mortgage originations in the first half of 2013, is expected to decline to less than 50 percent of originations by the fourth quarter, according to a second-quarter refinance report produced by Freddie Mac economists.
Wells Fargo last month reported record net income of $5.5 billion for the second quarter, up from $5.2 billion in the first quarter.