Wells Fargo is preparing to cut thousands of jobs beginning this year, according to a new report

  • Wells Fargo is preparing to cut thousands of jobs, Bloomberg Law reported Thursday.
  • The bank has been rocked by regulatory fines and the broader coronavirus-driven economic downturn. 
  • Shares of the bank fell in trading Thursday following the report.
  • Visit Business Insider's homepage for more stories.

Wells Fargo is preparing to cut thousands of jobs starting later this year, Bloomberg Law reported on Thursday, citing people familiar with the matter.

The company's plans will eventually result in eliminating tens of thousands of positions due to pressure to "dramatically reduce costs," the report said.

Wells Fargo, the fourth-largest U.S. lender by assets, is leaning on cost cuts to stabilize its bottom line as it recovers from a raft of fines and costs relating to sales abuses first uncovered in 2016 and mounting loan loss provisions due to the coronavirus-driven economic downturn.

Read more: Wells Fargo CEO Charlie Scharf is looking at outsiders to run the bank's sprawling wealth business. Here's why it may be one of the toughest jobs on Wall Street.

The bank's executives have not yet adopted a specific target for shrinking its workforce of about 263,000, the report added, citing one person familiar with the matter.

They are not likely to share details on the plan when they announce the bank's second-quarter results on July 14, the report added.

A spokesman for Wells Fargo declined to comment on the report.

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