Wells Fargo announced that it is cutting more than 700 jobs in commercial banking.

Why should we care?
Wells Fargo’s job cuts could be a blow for small- to medium-sized businesses. According to Bloomberg, today’s staff reductions -- part of a bigger initiative to reduce the bank’s headcount by thousands -- are in a unit that offers a variety of services to businesses that typically have more than $5 million in annual sales. The small business segment is a customer group fintech startups like Novo, Azlo, and others have tried to reach during the pandemic as entrepreneurs navigate new challenges. Wells, however, is under pressure to reduce overhead after slashing its dividend and reporting a quarterly loss earlier this year. “We are at the beginning of a multiyear effort to build a stronger, more efficient company,” a Wells Fargo spokesperson said. The bank isn’t alone in announcing cuts this week: Santander U.S. announced that it’s trimming staff numbers by around 200 in the areas of consumer and small-business banking.