Thread regarding Charles Schwab Corp. layoffs

The layoffs were the most ethical thing I've seen of my former direct management in 2 years.

Being ignored while raising solvable SEC and FINRA violations upset me more. I'd be happy to see Schwab fined again now that I'm out.

(Written by ChatGPT)

Aren’t people getting paid right now for not working? Huh

If this event hasn’t taught folks the difference between what corporations “SAY” and what corporations “DO”, I don’t know what else can teach that crucial life lesson.

Take aways:

1. Schwab, like Wells Fargo, Bank of America and others is a corporation that exists to make money not to make you happy.

2. The “we are a family” concept is a scam to fabricate the illusion of a desirable “corporate culture”.

3. The line “we will do what is right for our clients” is used when convenient and profitable.

4. Executives at Schwab and other firms will lie to protect themselves and their compensation packages. Don’t fall for the nice, charismatic types.

5. Someone said it perfectly: “Loyalty from a company is expressed in the financial guarantees expressed in the employment contracts and multi-million dollar severance packages C-level executives get when they hire on. Don't have one? Then the company's loyalty is expressed every payday, and nothing more.”

6. Read every word of every legal document you sign. Corporations pay attorneys to write them in a way that maximizes their benefits, not yours.

I am a former Schwab MD/SVP officer who was regularly interacting with the EC. I drank the coolaid and learned my lesson.

@1uyz+1pnED33s

You should format this as a new post as it is something everyone should see.

@vmo+1pnED33s Was that necessary to call someone stupid?
Be Kind this is very emotional and scary for some people.

Sorry, but the OP lacks perspective:

1. When Walt announced the acquisition three years ago, an employee asked about layoffs. He said that "We expect some layoffs because obviously the goal of acquiring another company is not to double your costs." Three years ago.

2. Any employee who is not an officer of a company is basically paid to do work that those above you don't want to do. Any talk of "family" or the like - from any firm - is for naive people. You serve at the pleasure of those above you.

3. People take these layoff decisions too personally, IMO. It's understandable, but making informed decisions about the impact of this person vs that person - and their performance - is not how it's done. I was a management consultant to C-level executives during the 2008-9 financial crisis. Even THEY were not allowed to select the people they wanted to keep of layoff. In every case across more than 20 C-level execs in as many firms, the CFO made a list by org chart, level and pay, and told the leaders who to layoff.

4. In the early 1980s, I got out of school and took the highest paying job I could get; it was wilt an oil company. I spent all of my money moving to take the job, move-in deposits and so on. I was truly broke but had good income. Six weeks later, the price of oil dropped. An HR person came into our work area and said "If I call your name come to the company meeting room." My name was called. She said - and I remember this word-for-word like it was yesterday - "If you're in this room you've BEEN laid off. Exit through that door to the parking lot. You cam come back tomorrow at noon and we'll give you your things in a box and pay up through NOON TODAY." I nearly became homeless and had to walk away from my apartment deposit and furniture.

Ever since then I've been operating like "Me, Inc." I took responsibility for myself and my employ-ability. I got advanced degrees, did a good job, and always watched company financials, never sticking my head int he sand.

5. I got off the Schwab boat as a pretty senior person as soon as they announced RTO. Never looked back. Glad to be done with them and their extreme woke politics and meetings where people complain about somebody interacting with cops in another city instead of working. Be your own boss wherever you work and realize that loyalty is a two way street. Loyalty from a company is expressed int he financial guarantees expressed in the employment contracts and multi-million dollar severance packages C-level executives get when they hire on. Don't have one? Then the company's loyalty is expressed every payday, and nothing more.

And BTW, when a certain senior executive with the initials WB was telling you that we will be returning to the office because "we love working together, face-to-face," he was saying that from his private,personal office in a strip center down the street from his home, not any corporate office in San Fran or Westlake. If you completed a form saying you want to work from home, I can see how that could get one on a layoff list.

6. Looking forward, know this about any comments on "no further layoffs planned." I once worked at a company that was large but privately held, so we had limited insight into company financials. We had to talk to one another about how busy they were with clients - or not. They announced layoffs, and said ""we've hit the (dollar) numbers we needed to hit. If you;re still here it's because you're valued and we need you. Now let's all get back to work together." They laid people off and said that 13 quarters in a row. Yeah, over three years. I got a clue and got another job. My boss called me (my other two bosses had been laid off already) and said "I'm sorry I'm going to have to lay you off" I said "Actually you;re not; I got another job. I was about to call you to give you notice." He said, "Oh no, I didn;t mean now, I meant in three months." I was a high-performer and they needed me to keep a strategic client on the hook for three more months. I made them put me on contract to make weekly client calls for three months until the services were completed. I charged them $9000 for that all while getting my new job.

Be "You, Inc."

Sorry, but the OP lacks perspective:

1. When Walt announced the acquisition three years ago, an employee asked about layoffs. He said that "We expect some layoffs because obviously the goal of acquiring another company is not to double your costs." Three years ago.

2. Any employee who is not an officer of a company is basically paid to do work that those above you don't want to do. Any talk of "family" or the like - from any firm - is for naive people. You serve at the pleasure of those above you.

3. People take these layoff decisions too personally, IMO. It's understandable, but making informed decisions about the impact of this person vs that person - and their performance - is not how it's done. I was a management consultant to C-level executives during the 2008-9 financial crisis. Even THEY were not allowed to select the people they wanted to keep of layoff. In every case across more than 20 C-level execs in as many firms, the CFO made a list by org chart, level and pay, and told the leaders who to layoff.

4. In the early 1980s, I got out of school and took the highest paying job I could get; it was wilt an oil company. I spent all of my money moving to take the job, move-in deposits and so on. I was truly broke but had good income. Six weeks later, the price of oil dropped. An HR person came into our work area and said "If I call your name come to the company meeting room." My name was called. She said - and I remember this word-for-word like it was yesterday - "If you're in this room you've BEEN laid off. Exit through that door to the parking lot. You cam come back tomorrow at noon and we'll give you your things in a box and pay up through NOON TODAY." I nearly became homeless and had to walk away from my apartment deposit and furniture.

Ever since then I've been operating like "Me, Inc." I took responsibility for myself and my employ-ability. I got advanced degrees, did a good job, and always watched company financials, never sticking my head int he sand.

5. I got off the Schwab boat as a pretty senior person as soon as they announced RTO. Never looked back. Glad to be done with them and their extreme woke politics and meetings where people complain about somebody interacting with cops in another city instead of working. Be your own boss wherever you work and realize that loyalty is a two way street. Loyalty from a company is expressed int he financial guarantees expressed in the employment contracts and multi-million dollar severance packages C-level executives get when they hire on. Don't have one? Then the company's loyalty is expressed every payday, and nothing more.

And BTW, when a certain senior executive with the initials WB was telling you that we will be returning to the office because "we love working together, face-to-face," he was saying that from his private,personal office in a strip center down the street from his home, not any corporate office in San Fran or Westlake. If you completed a form saying you want to work from home, I can see how that could get one on a layoff list.

6. Looking forward, know this about any comments on "no further layoffs planned." I once worked at a company that was large but privately held, so we had limited insight into company financials. We had to talk to one another about how busy they were with clients - or not. They announced layoffs, and said ""we've hit the (dollar) numbers we needed to hit. If you;re still here it's because you're valued and we need you. Now let's all get back to work together." They laid people off and said that 13 quarters in a row. Yeah, over three years. I got a clue and got another job. My boss called me (my other two bosses had been laid off already) and said "I'm sorry I'm going to have to lay you off" I said "Actually you;re not; I got another job. I was about to call you to give you notice." He said, "Oh no, I didn;t mean now, I meant in three months." I was a high-performer and they needed me to keep a strategic client on the hook for three more months. I made them put me on contract to make weekly client calls for three months until the services were completed. I charged them $9000 for that all while getting my new job.

Be "You, Inc."

Beware! When major US manufacturers announced layoffs (over a decade ago) that allowed workers to continue until after the new year, they later “updated” their terminations to be immediately effective the week before Christmas instead. Kinda like a blindside on Survivor. What it did was allow the companies to bring in more revenue on the backs of the terminated employees, without having to pay the promised severance packages. Get yourselves good lawyers NOW, because, if you think the present treatment is unethical, you ain’t seen nothin’ yet!

Nothing unethical was done. Maybe talk it out with your parents after you come back from trick-or-treating. :-)

An old expression comes to mind: "Corporate america is a cruel mistress" .... it really always has been and schw is no different.

All the social stuff companies do is a ruse designed to get more out of employees for less money. It's just that simple. You need to lookout for #1 and see the company you work and the people you work with for for what they really are. They aren't your family.

Its good to work through your anger in words. Certainly better than other less constructive ways. It wasn't fair. But like the saying goes - Life isn't fair, it never was and never will be.

I was you at one point OP. Do better than I did. Get over it before it paralyzes you in anger and good opportunities pass you by.

Is the OP serious? Or just forget to read their package details?

The EC has tanked the culture, yes. But the layoffs were done well imo. I was laid off. Of course, the handling of the announcement and timing after RTO were very stupid on the EC’s part. They’ve lost people’s trust.

But the layoff itself was delegated to others and for me it was someone I worked with, who actually hired me. And they were pretty visibly upset. I still look up to them. They are not to blame for being the messenger.

And now I have 60 days pay plus severance which gives me time to look for another job. And if I don’t get a job, or get one starting in Jan, I get the bonus too.

Layoffs s*ck. But this has been done as professionally as possible and I feel pretty well done compared to other companies.

You are clearly too stupid to function in a real job. If you still don’t understand how the notice period works, and have been incapable of reading the simple English document about it, there is no hope for you. Instead you just rely on internet misinformation to understand things. Spoiler alert, you’re allowed to get a job during the notice period and will still get all of your owed payouts. People like you make me lose all faith in humanity’s ability to survive.

Respectfully, and know that emotions are high right now, but it was not unethical.

Unethical would be doing the absolute minimum required by law and not trying to handle this with professionalism.

The delay was clearly a combination of plan and being ill prepared. There was always going to be a layoff post merger. The 1,000 plus let go wasn’t nearly enough. And then the stock getting hit by bond contagion plus soft interest rate spread. Yes, it was d-mb that the EC thought we’d print money at 2% rates, but not unethical.

The last bit of delay appears to have been to fit year end and push severance to 2024, plus the bonus. It wasn’t intended, but once folks complained about the delay I’m guessing the EC thought it would take some heat off.

And the company changed under DP and then when Chuck went MAGA. It will when Rick takes over. Yes, we are worse now. And it will be worse in the future. A lot of work is focused on staff reduction. But we laid people off by the thousands over the years. And we will again.

I agree with you 100% OP. The deceitfulness and underhanded-ness of how this all went down was appalling. Especially after they made us work our A@#es off for conversion. They are as unethical as every big wall street firm. Horrid.

You might want to read your paperwork again. You’ll be paid for the next 60 days (notice period) on your termination date you’ll get your severance payout. If you get a job during your notice period, you expedite your severance payout.

Honestly… there are those of us who would have wanted to be included in the layoffs for various reasons. A severance is not so bad, and Schwab seems to have been more than fair by keeping everyone on the books until Jan 5. Once you’re paid severance, you’re also eligible for the annual bonus. These funds should at least carry you a couple months, if not more, until you find a new job. Work diligently to find those opportunities that will hire you with an early/late January start date and you will be just fine.

It still blows my mind that people actually buy into this “Schwamily” thing… it’s your employer… if you are looking for meaningful connections at work then I feel sad for you.

🎻

TLDR