Wells Fargo to cut 3,800 jobs from consumer-finance branch

Wells Fargo sign
Wells Fargo sign

Wells Fargo & Co.

will lay off 3,800 workers and close its 638 consumer financial stores over the next 12 months in a consolidation move brought on by the 2008 merger with Wachovia bank.

It also announced that it will get out of the nonprime mortgage business. Subprime loans -- those made to consumers with bad credit or high debt -- contributed to the global credit crisis when home prices tanked and housing foreclosures skyrocketed.