Wells Fargo expects its 2025 gross expense savings to reach $2.4 billion by the end of the year, bringing its total savings from 2021 to 2025 to $15 billion. 

These savings allowed the $2 trillion bank to largely increase its spend, effectively creating a better and stronger bank over time, Chief Executive Charlie Scharf said during the bank’s third-quarter earnings call today.  

Increased savings, increased spending and added efficiencies have resulted in a 24% reduction in headcount since 2020, Scharf said. The bank’s headcount in Q3 was 211,000. 

“This was not driven by business sales or outsourcing, but in fact, real improvement in our efficiency,” Scharf said. 

However, the bank’s efficiency ratio in Q3 was 65%, slightly worse than the same period last year when it was 64%, according to the bank’s earnings supplement. 

Despite this, the bank’s efficiency ratio has generally improved over time, according to FinAi News’ Efficiency Ratio Dashboard. 

Opportunity for efficiency gains

There is an opportunity to further reduce headcount by automating more processes, and AI can help with that,” Senior Executive Vice President and Chief Financial Officer Michael Santomassimo said during the earnings call. 

Wells Fargo has deployed the following to boost efficiency: 

• Expanded the capabilities of its AI-powered virtual assistant; 

• Is managing 191 projects involving AI, machine learning and natural language processing; and 

• Partnered with Google Cloud in August to deploy agentic AI across operations. 

“We think the tools will help our employees do their jobs better, more efficiently, but even more importantly, provide insights and intelligence to the work they’re doing so they can spend more time on higher order functions,” Tracy Kerrins, consumer CIO and head of enterprise generative AI at Wells Fargo, previously told FinAi News. 

Wells joins JPMorgan in its efforts to lean on technology rather than hiring. 

JPMorgan Chief Financial Officer Jeremy Barnum said during the bank’s earnings call today that JPMorgan is looking to use technology to accomplish certain tasks rather than adding to the headcount. 

Wells Fargo stock was up 7% to $84.56 at market close today. Wells Fargo has a market capitalization of $270.8 billion. 

Check out our exclusive new bank industry data here.