Citi employees received their email regarding layoffs recently as part of its "reorganization." However, layoff talk had been going on for months prior. Same message delivered a little differently, but eerily familiar: 1) Working from top/down and stripping out middle management; 2) removing overlapping roles and redundancies; 3) folks in profit areas safe (or put in a very crass way by Citi CEO - your either on the (money) "train" or off - they don't need bystanders (oof); 4) will focus layoffs on functional/geographical considerations; 5) layoff #'s will be announced in November and layoffs will occur through Q4 - Q1 2024 (rumors on their board state week of 10/23 will be mass layoffs). The Citi layoff board is filled with the same talk as here. My take away is that at Citi, "functional" roles are a specifically defined group to include: Finance, Operations & Tech, HR, Internal Audit, Risk, Legal & Compliance, ESPA. I don't know what ESPA stands for. My guess is that if they are using the same consultant, much of the same groups may be the target at Schwab as well.
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You never go Full Sherlock…
When the layoff gods come for BCG I wonder what their board would look like.
This is probably the most informative post on this forum. The post you are reading right now. This one. Correct. The one you are reading right now. You win!
Thanks for the insight, Les. Always top notch.
This analysis is spot on. If you go the Les Schwab thread you will find the exact same consulting firm, and exact same comments from employees. Except replace finance with tires.
@yon+1oY6JiR2 Correct, and it looks like they are using a f'ing formula and just superimposing it on each company and getting paid handsomely. Neither employee nor client consideration is taken into account — it's "Through the shareholders' eyes" - help shareholders own their tomorrow, because they own your's. Now, I am not saying Schwab doesn't need to streamline — there are 4-5 levels of MDs in some orgs which is crazy, but the treatment and messaging to employees over this period has been horrific. They have also started a standard of layoffs every other year — 2019, 2021, 2023 — that is not "financial discipline" - it's incompetence.
@uiq+1oY6JiR2 My director salary wouldn't pay for 5 operational people — I am not a PL, so maybe barely 2 entry level - though maybe 5 phone reps b/c those roles aren't paid a living wage and they have a really difficult job IMHO - I couldn't do it with the time pressure given (not everyone is calling to find out their balance). Would like to see Walt & Rick on the phones for a week (he-l, I'd pay good money if they did it for a day - all proceeds to charity though - Walt & Rick give up their comp to charity for that time and get paid what the phone reps get paid; how about that for a Volunteer Week event — and we all see their time stats) :(
This isn’t exactly rocket science. We were told you how it was going to work when the first announcements went out.
It’s much more cost effective to lay off one director versus 5 operational people.
BCG never met a job they didn’t mind cutting..
Well written OP!!
OP ,outstanding research, went to the Citi lay off site. if their leadership names were switched with ours, it is the exact mirror of what Schwab is doing, and same lack of engagement / opaque transparency of their leadership. Is there a corporate “Lay off for Dummies “ on how to demoralize employees as they walk us out the door?is it the guidance by “Their” consulting group? Stock price dropping like schwabs. No date Of lay-off or number of employees impacted.Greed. Plain&simple. No sustainable reason for ec/ceo/ mgt salaries ,when this is the result of schwab “leadership.” No Money for promotions , so they can make sure they get their 1-2 mil every month as our stock pr plunges.
Someone at BCG getting a pay raise and extra bonus for planning your firing lmfao.
OP going full Sherlock
Great Job on the research OP!
Boston Consulting group