There is an article out here at RIABIZ https://riabiz.com/a/2023/10/30/with-the-swiftness-of-a-lightning-strike-charles-schwab-corp-fires-as-many-as-2000-employees-with-no-public-announcement-affecting-legacy-schwab-as-well-as-td-ameritrade-staffers about waves of this happening, with as many as 4-7k impacted in the end. What are your thoughts? Thanks!
6 replies (most recent on top)
There will be waves. I know for sure there will be one Q1 2024 but I don’t know sh! T about nothing but if you read the announcement of RTO and layoffs from the summer employee reduction is $500M not including real estate. This is was a just a fraction.
We’ve laid off repeatedly.
October 2020 - https://www.cnn.com/2020/10/26/business/charles-schwab-td-ameritrade-merger-job-layoffs/index.html
February 2021 - https://www.cnbc.com/2021/02/10/charles-schwab-lays-off-200-more-employees-amid-td-ameritrade-integration-.html
Throughout 2021 and 2022 there were small layoffs. If you didn’t know someone impacted you would have missed it. Walt and the EC said it would be quarterly. It was mostly.
Today was the result of
SVB and short term bond contagion.
Post integration work. It would have looked really bad to lay lots of people off and then failed integration.
Sizing the two companies into one.
Getting rid of people ‘they’ want to get rid of - older workers, those with illnesses, protected classes, troublemakers, unneeded skills.
Companies like ours don’t promote from within, and when they do it is without training or real carer development. Our managers are so bad (mostly) and they use surveys and arrogance to tell them otherwise. It wasn’t helped by years of merger distractions. And then we have a lack of plan. Sorry, Walt, but interest rate heavy revenue wasn’t a plan. Running the Visa playbook in STS wasn’t a plan. Using consultants everywhere wasn’t a plan. The only goodness is finally addressing so many layers of management and today didn’t go far enough.
RIA is high at 7,000 and sensationalized but we will have more layoffs. And when Rick takes over with his McKinsey way of thinking there will be more. It’s been two years since he was named president and he joined six or so ago. The best heard about him is a pun on things getting worst-er. Watch Last Week Tonight to learn about McKinsey and Boston Group.
We will get through this, but don’t expect the old company or even a good one. Some will find opportunities with in. But the coming years will be maintain and address all the things that were skipped. Close facilities. Automate. Cost cut. Cover debt. Look to AI for new business (not a plan). Wait for boomers to die so retail and AS can move those funds from other firms when the kids inherit (not a plan as we will lose assets too). Rebrand when Chuck passes.
It’s a check. Some may thrive. But I got and gave more condolences to survivors today. Many were happy to be out with a package.
Chin up. Stiff upper lip. As companies go we aren’t the worst. We could be better. Survival and change su-k.
@ivz+1pm77Oqj
Is this true? I thought tge issues new shares, bot borrowed miney and bought TDA for cash.
Riabiz articles at sh-t loaded cr-p! All the cheap a-s-s writer does is - take posts from here and publish it as article. No data backing, no research, no content.
The TD integration isn’t complete so they couldn’t let everyone go this round. Still need people through the final conversion in March ‘24 before they can layoff the remainder.
The 2 key drivers of revenue are under pressure - NIM/bank sweep & advisory fees. They bought TD with debt when rates were much lower. Borrowing at higher rates vs funding from bank sweep. Uncertainty has clients on hold vs adding risk. Need to cut costs in a huge way.