2 Texas financial giants cut hundreds in massive restructuring

Two of Texas’ best-known financial institutions are cutting jobs as the banking sector continues to tighten. Wells Fargo and Colonial Savings both filed notices with the state confirming a combined more than 350 layoffs over the next several months, citing restructuring and division shutdowns tied to shifting economic conditions.

“These business decisions are never easy,” the company wrote, adding that it would provide severance, career assistance and other services to help displaced workers transition. Wells Fargo said eligible employees will receive severance based on years of service and can continue participating in the company’s health plans at active rates for a period of time.

Meanwhile, Fort Worth-based Colonial Savings—a longtime Texas lender founded in 1952—plans to wind down its servicing division, leading to the loss of 130 jobs at its 2626A West Freeway headquarters between January 1 and July 31, 2026.

“This layoff is expected to be permanent. No bumping rights exist. None of the affected employees are represented by a union,” the company wrote in its WARN notice.

The layoffs come as Texas’ financial sector faces growing strain from high interest rates, slowing mortgage demand and widespread automation.

After years of expansion, many large banks have begun consolidating operations and cutting administrative staff, particularly in secondary markets like Lubbock and Fort Worth, where back-office teams once handled loan servicing, data processing and customer support.

For Colonial, the decision marks the end of one of its legacy divisions. The Fort Worth-based bank has been a major player in home lending for decades, but the prolonged slowdown in mortgage refinancing has sharply reduced the volume of loans needing active servicing.

The Texas cuts come amid a larger, nationwide wave of job reductions at Wells Fargo, which has been steadily shrinking its workforce for several years. The San Francisco-based bank—one of the nation’s largest lenders—has already reduced its headcount by 24 percent since its 2020 peak of 276,000 workers, dropping to about 211,000 employees as of Sept. 30, according to the Charlotte Business Journal.