A Wells Fargo branch in New York (Photo: Bloomberg) A Wells Fargo branch in New York (Photo: Bloomberg)

On Wednesday, Wells Fargo & Co. told high-earning employees it would stop matching contributions to their 401(k) plans. By Friday, the bank reversed course.

The about-face followed a swift backlash from affected employees, who earn more than $250,000 a year, according to people with knowledge of the situation.

The measure was part of a larger set of changes the San Francisco-based firm rolled out this week to put “greater emphasis on how we support our lower-paid employees through our compensation and benefits program,” company spokesperson Beth Richek said in a statement.

“After additional review and consideration, we have decided to continue offering the 6% company matching contribution to all 401(k) plan eligible employees,” she said.

See Wells Fargo Mulls Sale of Asset Management Arm; Restructures Wealth Unit.

The drama unfolded as Wells Fargo undertakes a years-long cost-cutting initiative under Chief Executive Officer Charlie Scharf, who took over last October.

He has repeatedly lamented the firm’s spending and pledged to eventually shave $10 billion in annual expenses.

The company, which employed 274,900 people at the end of September, has embarked on workforce reductions that could ultimately number in the tens of thousands.

— Related on ThinkAdvisor:

Copyright 2020 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.