Two major financial institutions in Texas, Wells Fargo and Colonial Savings, have confirmed plans to lay off over 350 employees as part of a workforce restructuring amid tightening conditions in the banking sector. These job cuts reflect ongoing adjustments within the industry due to economic shifts.
Wells Fargo disclosed that it will be terminating 225 positions at its Lubbock support operations center by December 26, as detailed in a filing with the Texas Workforce Commission. The filing, dated October 28, indicates that this closure is expected to be final, with affected employees lacking union representation or bumping rights. The company emphasized the difficulty of such decisions, promising severance packages, career transition assistance, and continued health plan participation for those eligible, based on their years of service.
In parallel, Colonial Savings, a long-established lender headquartered in Fort Worth since 1952, plans to phase out its servicing division, resulting in 130 job losses at its 2626A West Freeway location from January 1 to July 31, 2026. This decision likewise involves permanent layoffs with no bumping rights or union protections for the impacted employees.
These layoff announcements come as the financial sector in Texas deals with increasing pressures from high interest rates, declining mortgage demand, and extensive automation. Many large banks, after years of growth, are now consolidating functions and reducing administrative roles, particularly in secondary markets such as Lubbock and Fort Worth, where operations like loan servicing and customer support were previously centralized.
For Colonial Savings, the decision signifies the conclusion of one of its historic divisions. Known for its significant role in home lending, the bank has seen a marked decrease in the volume of mortgage refinancings necessitating active servicing.
These job reductions in Texas are part of a broader trend at Wells Fargo, which is executing a nationwide downsizing of its workforce. The San Francisco-based bank, recognized as one of the largest lenders in the country, has reduced its employee count by 24% from its peak of 276,000 in 2020, down to approximately 211,000 as of September 30, according to data from the Charlotte Business Journal.
