Wells Fargo & Co (NYSE:WFC) will eliminate a number of small businesses after failing to meet revenue expectations in the second quarter amidst spiraling costs of operations. The spin off according to Chief Financial Officer, John Shrewsberry, should allow the company to pay more emphasis on high growth businesses.

Wells Fargo Spin Off Drive

The third largest bank in the U.S has already hinted at the possibility of retreating from the weak car market after new car loans dropped by almost half in Q2. A radical slim down of the bank is however not expected the chief executive officer, Tim Sloan, having reiterated that the bank continues to benefit from its diversified business model.

However, it is still unclear other businesses that it will target as part of the spin-off drive expected to affect products worth millions of dollars.

“There are a handful of businesses in our mindset. They’re not at the scale of most of our businesses. . . not top-tier providers,” said Mr. Shrewsberry.

Wells Fargo has already started works on the spin off drive having recently struck deals for the sale of its share registration arm in London to Equinti for $227 million. The financial institution has also offloaded its commercial Insurance businesses for an undisclosed amount.

Fake Accounts Scandal factor

The restructuring has resulted in the concentration of the company’s core operations in the U.S compared to other banks. Wells Fargo has also embarked on a cost cutting drive as it looks to shore up earnings following disappointments on the revenue generation front. The company is in the process of collapsing more than 50 regional offices into smaller centers as part of the cost saving push.

A move to spin off small businesses is also part of an effort that seeks to restore investor confidence. Wells Fargo is trying to rebuild its reputation after coming under criticism for allowing its employees to sign up customers’ accounts without their Knowledge.

Last year Wells Fargo admitted that under pressure from bosses, employees faked signatures and pin Numbers in the race to sign up more customer’s accounts and credit cards.

Wells Fargo was down by 1.10% in Friday’s trading session to end the week at $54.99 a share.