Site icon Money & Markets, LLC

Wells Fargo Slashing 10% of its Workforce Over Next 3 Years

Markets In Brief Wells Fargo Buffett's annual letter

Wells Fargo to Cut 10% of Workforce Over Next 3 Years

Wells Fargo is planning to cut up to 10 percent of its workforce over the next three years, which will result in tens of thousands of job losses for employees of the nation’s third-largest bank.

Wells Fargo Chief Executive Tim Sloan made the announcement to employees on Thursday. The bank currently employs roughly 265,000 workers, and plans to cut its headcount through both attrition and layoffs.

The San Francisco-based bank has been under a cloud of scandal since 2015 when it admitted its employees opened millions of fake bank accounts for customers in order to meet unrealistic sales goals. Since that admission Wells has admitted to other scandals, including selling auto insurance to borrowers who did not need it.

Aston Martin Valued at $6.7B in IPO Pricing

Aston Martin Lagonda, the maker of James Bond’s favorite sports car, plans to raise as much as 1.27 billion pounds ($1.67 billion) when it sells shares to investors for the first time.

The luxury carmaker says it will sell a 25 percent stake for between 17.50 pounds and 22.50 pounds a share, valuing the company at as much as 5.07 billion pounds ($6.7 billion). Aston Martin said Thursday the exact price would be set around Oct. 3.

The company says Daimler will remain a shareholder and won’t reduce its 4.9 percent stake for 12 months.

Aston Martin CEO Andy Palmer says the share sale “will provide investors with a fitting opportunity to participate in our future success.”

The carmaker was founded in London in 1913 and is headquartered in Gaydon.

Fox-Comcast Battle to Buy Sky to Be Settled by Auction in UK

British regulators say that the corporate battle between 21st Century Fox and Comcast to take over broadcaster Sky will be settled by auction.

The Takeover Panel, an independent regulator, says that since neither company has declared its offer final, an auction procedure is expected to commence at 5 p.m. on Sept. 21 and end during the evening of Sept. 22.

Comcast has put down a 26 billion pound ($34.3 billion) offer for Sky. Fox has bid 24.5 billion pounds for the 61 percent of the satellite broadcaster it does not own.

The panel will make an announcement setting out the prices of the offers at the end of the auction.

IRS to Update W-4 Form in 2019 and 2020

The IRS will soon update the W-4 form used by employees at their workplace to better reflect the recent changes to federal tax law.

The U.S. Treasury said Thursday that the IRS will update the form in the coming weeks for use for the 2019 tax year. That version is expected to be fairly similar to the W-4 currently in use.

A more significant change will come in 2020 with the hope of making the withholding system more accurate and transparent to employees.

Employees fill out a W-4 form with employers so that the employer can withhold the correct federal income tax from their pay.

The IRS released a draft of the redesigned form in June for public comment and said it is working to integrate those suggestions.

Nissan Recalls Cars, SUVs Due to Risk of Fire

Nissan recalled more than 215,000 cars and SUVs in the U.S. due to a fire risk and is advising people to park the vehicles outdoors in rare cases.

An anti-lock brake pump can leak brake fluid onto a circuit board, causing an electrical short and increasing the fire risk, according to the company. If drivers see the anti-lock brake warning lamp for more than 10 seconds after starting the engine, Nissan urges them not to drive the vehicles and park them outdoors.

The recall covers certain 2015 to 2017 Nissan Murano, 2016 and 2017 Nissan Maxima, 2017 through 2018 Nissan Pathfinder and 2017 Infiniti QX60 vehicles.

Nissan estimates 56 percent of the vehicles have the problem, which has been traced to faulty seals in the pump.

Some Muranos were recalled for the same problem in 2016.

Documents posted Thursday by the U.S. National Highway Traffic Safety Administration don’t say if there have been any fires. Messages were left early Thursday for a Nissan spokesman.

Dealers will inspect the pump serial numbers and replace them if necessary starting Oct. 15.

Norway’s Central Bank Raises Rates for First Time 7 Years

Norway’s central bank has raised its key policy rate by a quarter of a percentage point to 0.75 percent — its first increase in seven years.

The Norges Bank said Thursday “the upturn in the Norwegian economy continues” and that “if the key policy rate is kept at the current level for too long, price and wage inflation may accelerate, and financial imbalances build up further.”

Governor Oeystein Olsen also said a further increase could be delivered in the first quarter of 2019.

Oil-rich Norway is not part of the European Union, though it has a close economic relationship with the bloc.

Under Armour Cuts Global Workforce by 3 Percent

Under Armour will cut its global workforce by 3 percent by the end of March.

The Baltimore sports gear company said Thursday that it now anticipates restructuring-related charges this year of between about $200 million and $220 million. It previously projected restructuring charges between $190 million to $210 million.

Excluding those costs, Under Armour Inc. expects full-year profits of between 16 and 19 cents per share. Its prior outlook was for 14 to 19 cents per share. Analysts polled by FactSet expect earnings of 16 cents per share.

Shares rose 2.7 percent before the opening bell.

© The Associated Press. All rights reserved.

Exit mobile version