Fed Rate Hike Impact: Wells Fargo's Restructures Business, Slashes Over 500 Jobs

Wells Fargo & Co WFC slashed hundreds of jobs in its mortgage unit this week, adding to thousands of cuts last year under its major business overhaul plans.
The latest reductions affected more than 500 employees, Bloomberg reports.
Wells Fargo prepared to exit correspondent lending, a pivot CFO Mike Santomassimo said last week is "largely done." The firm also aimed to shrink the portfolio of loans it services.
"As part of these efforts, we have made displacements across our home lending business in alignment with this strategy and in response to significant decreases in mortgage volume in the broader market environment," the firm stated.
Wells Fargo's downsizing added to thousands across the home-lending industry in recent months after the Federal Reserve hiked interest rates.
Despite reductions last year, JP Morgan Chase & Co JPM eliminated hundreds of positions in its mortgage unit this month.
Wells Fargo's Q4 revenue declined 5.7% to $19.66 billion, missing the consensus of $19.98 billion.
The company posted an EPS of $0.67, compared with $1.38 a year ago and slightly ahead of the consensus of $0.66.
Price Action: WFC shares traded higher by 0.50% at $46.24 premarket on the last check Thursday.