“We have gone through the budgeting process, and even pre-artificial intelligence, we do expect to have fewer people as we go into next year,” Scharf said at the Goldman Sachs financial services conference, noting that severance expenses are likely to rise in the fourth quarter.
AI Set to Reshape Work, Not Replace Humans
Scharf described AI as “extremely significant” both in terms of operational efficiencies and its potential impact on headcount. While AI is not expected to fully replace human employees, it is likely to change how work is carried out across the bank. He framed the expected workforce reductions as part of Wells Fargo’s ongoing efficiency efforts, echoing comments he made last month.
The bank plans a gradual rollout of AI over the next year and beyond. “This is a positive reality for the bank,” Scharf said, highlighting the productivity gains already seen. For example, he noted that generative AI tools within the engineering workforce are 30% to 35% more efficient in writing code, allowing the bank to accomplish more without immediately reducing staff.
Workforce Decline Reflects Long-Term Strategy
Wells Fargo had 275,000 employees when Scharf became CEO in 2019. As of September 30, 2025, the bank employed just over 210,000 people, reflecting a broader trend toward efficiency-driven reductions.
Selective Growth Ahead
Following the lifting of a $1.95 trillion asset cap by the Federal Reserve in June—a restriction imposed after the bank’s fake-accounts scandal—analysts anticipate Wells Fargo may pursue expansion. However, Scharf emphasized that acquisitions would only be considered if they provide strong financial returns and clear strategic value, with no rush to make deals simply to boost earnings.
“We have no interest in doing something which could just add a little bit of earnings to the company,” he said, underscoring a cautious, disciplined approach to growth while integrating AI into the bank’s operations.