Abbot Downing Unaffected By Parent Bank's Job Cuts

Tom Burroughes

21 September 2018

that focuses on serving clients such as ultra-high net worth individuals and families, isn’t included in its parent bank’s moves to cut up to 10 per cent of total workforce, this publication understands.

Yesterday, the California-headquartered bank, which has suffered from a number of compliance failings in the past few years, announced plans to cut five to 10 per cent of its workforce, affecting as many as 26,500 jobs if based on existing staff totals.

Family Wealth Report contacted Abbot Downing to check if it will be affected. In the past, this publication understands that this business isn’t going to be affected.

“Over the past six years since we were branded Abbot Downing, we have seen growth in our business and have added additional offerings to meet the needs of our clients,” a spokesperson said.

Wells Fargo’s chief executive, Tim Sloan, told a regular “town hall” meeting of the bank’s staff that the cuts form part of a “commitment to efficiency”. The “company expects headcount to decline by approximately 5 to 10 percent within the next three years” He said the cuts will reflect displacements as well as normal team member attrition over that period.

Bank staffing at lenders around the world has been hit as online services have caused banks to trim traditional branch offices and associated workforces.

In April this year, the bank agreed to pay $1 billion to settle claims with US authorities over deficiencies in its risk management. There are also reports that Wells Fargo has been considering restructuring its wealth management arm, but that no final decision has been made yet. Abbot Downing is understood to be unaffected by any such adjustments.

See a report here on the bank’s latest quarterly results.