Wells Fargo (WFC) CEO Charles Scharf warns on severance expenses anticipated for the fourth quarter. Yahoo Finance Live chats about what this signals for layoffs ahead and monitors the action surrounding Wells Fargo's stock price Tuesday morning.
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BRAD SMITH: We're also watching shares of Wells Fargo this morning too. Wells Fargo CEO Charlie Scharf saying and warning over large severance expenses in the fourth quarter. He says that the bank is looking at, quote, something like $750 million to a little less than a billion dollars of severance in the fourth quarter that we weren't anticipating just because we want to continue to focus on efficiency here.
So this is a very kind of couched and almost mystical way of saying that there's more layoffs coming at Wells Fargo, it seems like.
SEANA SMITH: Yeah. They need to be a little bit more efficient. They need to be a little bit more disciplined. That is a theme that we've been hearing from a number of our strategists throughout this earnings season. And it looks like it is reflected here in some of the comments that we're getting from Wells Fargo. CEO Charlie Scharf also went on to say that the company is going to have to be more aggressive about their own internal actions.
But again, he said that we do think that is the right thing to do for the long-term. Again, he's making these comments at the Goldman Sachs US Financial Services conference here today. So a bit of a move here on the stock in early trading, off just about 1%.