Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
Data Centres: Boom and Backlash
22OCT

Wells Fargo cuts, and names the machine

2 min read
16:40UTC

Wells Fargo reported 197,000 staff on 16 July, its 24th consecutive quarterly decline. Finance chief Mike Santomassimo said the reductions have a lot of room to go, and became the only bank CFO this week to put AI in the sentence.

IndustryAssessed
Key takeaway

One bank named AI this week, hedged it mid-sentence, and cut 0.009% of the US workforce.

Wells Fargo reported 197,000 staff on Thursday 16 July, down 3,500 in the quarter and 15,000 on the year, its 24th consecutive quarterly headcount decline.⁠1 Chief financial officer Mike Santomassimo told analysts the reductions have "a lot of room to go", and that "technology and AI helps us get at aspects of that in a different way or faster than maybe in the past".⁠2

Read that second quote slowly, because the middle of it is doing the work. "In a different way or faster" is a disjunction, and a disjunction is satisfied by either branch. The sentence is true if AI has displaced nobody at Wells Fargo and has merely changed how an existing programme runs. Twenty-four quarters of decline reach back past the launch of ChatGPT by four years, which tells you the programme did not start with the technology now credited for accelerating it. Santomassimo said less than the week's headlines had him saying.

He still said more than his peers. Compare the attribution with Oracle, which named AI as a workforce-reduction factor in its FY26 filing, a document securities law compelled it to produce. Santomassimo volunteered his version to analysts on an open call, unprompted, and hedged it anyway. Finance-sector payrolls had already shed 22,000 with net-reduction expectations doubling in the Cambridge survey of the sector, so the direction was on the record before he opened his mouth.

Now set 15,000 against the denominator the Federal Reserve works with. US nonfarm employment, the headline count that excludes farm and household work, runs to 158.6m people. Wells Fargo's entire year of reductions comes to 0.009% of it. A governor telling a conference on Tuesday that the aggregate shows little displacement, and a CFO telling analysts on Thursday that his own cuts have room to run, can both be reading their instruments correctly. Neither was talking about the other, and the arithmetic explains why.

Deep Analysis

In plain English

Wells Fargo now employs 197,000 people, down 15,000 from a year ago and its 24th straight quarter of decline. Its finance chief, Mike Santomassimo, said the cuts have a lot of room to go and credited technology and AI with getting the bank to the same place, in a different way or faster than before, a careful phrase that leaves open whether AI displaced anyone at all. The reason this shows up nowhere in official layoff statistics is structural: US law only requires companies to report layoffs that hit a size threshold at one site within a month. A bank shedding staff gradually across years and branches never crosses that line.

Deep Analysis
Root Causes

The WARN Act, written in 1988, triggers on a threshold breach at a single site within a 30-day window.

It has no mechanism for cumulative, attrition-driven decline spread across years and branches, which is structurally why Wells Fargo can lose tens of thousands of positions without ever filing a mass-layoff notice.

What could happen next?
  • Consequence

    Wells Fargo's attrition-driven decline crosses no WARN Act threshold despite totalling 15,000 positions over a year.

  • Precedent

    Other banks managing headcount through attrition rather than announced cuts could adopt the same low-disclosure path.

First Reported In

Update #17 · Fed hedges as four banks cut headcount

BigGo Finance· 17 Jul 2026
Read original →
Causes and effects
This Event
Wells Fargo cuts, and names the machine
Wells Fargo is the only US bank in this reporting window to name AI in connection with its shrinking headcount, and it hedged the claim inside the sentence that made it.
Different Perspectives
Mohsen Rezaei
Mohsen Rezaei
The senior Iranian security official and former IRGC commander told Press TV that US-linked technology infrastructure in the region could become a target if war resumes. He named the UAE and valued the assets at more than US$2 trillion, without a breakdown.
Mykhailo Shelemba
Mykhailo Shelemba
Datagroup's chief executive says the Kyiv data centre hit on the night of 18 to 19 October is beyond repair. Services continue from backup sites, and no staff were hurt.
Kristen Umstattd
Kristen Umstattd
The Loudoun supervisor voted against fast-tracking Amazon's rezoning of the Ashburn campus. She said there were no figures yet on homes, school or road costs.
Akishima residents' litigation group
Akishima residents' litigation group
The group formed on 18 October and plans to sue Nihon GLP by year-end to stop eight data-centre buildings. Its lawyers will argue rights to life, health, clean water and a natural environment after mediation failed in August.
Óscar López
Óscar López
Spain's Digital Transformation minister said on 22 October he could not confirm when the data-centre decree will be approved. He added that Google has always committed to investing in Spain.
Google
Google
Google said it would comply with LVV's order to stop preparatory works at Muhos and Kajaani until environmental assessments finish. A spokesperson conceded the company had fallen short.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.