on Wednesday, Wells Fargo & Company told high-earning employees that it would withhold contributions to their 401 (k) plans. The bank reversed course by Friday.
According to people with knowledge of the situation, there was a backlash in the face about affected employees earning more than $ 250,000 from the affected people.
Company spokesman Beth Richek said in a statement that the measure was a big part of the changes made by the San Francisco-based firm, with a greater emphasis on supporting its low-paid employees through a “compensation and benefits program” “. . “After additional review and consideration, we have decided to continue offering 6% company matching contributions to the plan for all 401 (k) eligible employees.”
The drama, which unfolded as Wells Fargo, is a one-year costing initiative under Chief Executive Officer Charlie Scharf, who took office in October last year. He has repeatedly reiterated the firm’s spending and promised to eventually cut $ 10 billion in annual expenses. The company, which hired 274,900 people at the end of September, has initiated workforce cuts that could eventually be in the thousands.