Thread regarding Wells Fargo & Co. layoffs

Why do people get let go during layoffs

People have odd ideas about why people get let go during layoffs.
Sometimes a company will cut an entire team, then hire half or more back as contractors, then re-hire them as FTEs a year or so later, because it helps with the bottom line and taxes, not because they want to get rid of all those people.
Sometimes a company will let an entire group go because upper management doesn't know what they do. Wells did this in 2018 and we're still feeling the pain in my department and with my customers (internal). And I mean stupid, senseless pain.
Sometimes people are let go because someone gave some darts to a monkey and pointed at a spreadsheet on the wall with everyone's names.
I'm only half joking about that, it can be pretty random sometimes.
And sometimes managers are asked to go all Jack Welch on their staff and rate them from 1 to 4, and then cut all the 4's, and if a manager says "I have no 4's, I have a bare bones staff as it is" they'll get a pretty good talking to and be forced to pick people on their team to let go.
I was told to do that once, I just delayed it until my management moved on to something else shiny and forgot about my team.
I did that once with offshoring, too, I just kept telling my boss' boss that I couldn't make the numbers work for replacing US based employees with offshore. I did hire offshore people for off hours, which worked out pretty good, but I kept my US people. This was not at Wells.
I think Wells is a pretty corrupt bunch, and I know there are politics in play and bad managers here and there, but layoffs are more nuanced and complicated than most people know.
Good people and toxic people get let go.
Good luck to all in 2020.

Reposted this from @12MiOcs3-abbk . Great post. As sad and as shallow as all of these reasons are, this can serve as a good reminder that being let go rarely has anything to do with us or our performance at work.

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| 1216 views | | 6 replies (last January 23, 2020) | Reply
Post ID: @OP+136c2KSv

6 replies (most recent on top)

Yea all those points are clear here.

The one has a toxic culture and would not recommend anyone to work here. Worst company I have ever worked for plus all they have are fines and slipped spots as far as size .

I would not recommend my worst enemy to work here

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Post ID: @3exk+136c2KSv

They are cutting bankers now. Wells Fargo does not care about loyal employees.

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Post ID: @2uoz+136c2KSv

legacy leadership here also hire contractors and get FTE job reqs approved but do not fill them. then when it's time for headcount reduction, we cut the contractors and get the approved-but-not-filled job reqs cancelled.

Why? because its a scheme. Cutting contractors and approved job reqs counts towards headcount reduction

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Post ID: @1uer+136c2KSv

The reason is every manager is given a target of how many people they must cut because of what was committed too with Wall Street. While the heads are gone, the work still needs to get done- hence temporary contractors. Then someone really smart in finance says, why are we paying so much for these contractors, if we hire them full time, it will be less than paying the consulting firm. Ya I know it’s crazy way of managing people and expenses. But that’s why WF is doing it.

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Post ID: @1bfl+136c2KSv

It is quick and easy to fire/layoff thousands of people. You get an instant plus to your balance sheet and other associated write offs for packages, etc. associated with layoffs. Layoffs and cost cutting are simple exercises in looking at spreadsheets. It is not that difficult.

Innovating and making money with new business and products requires leadership and intelligence.

We could save a ton of money RIGHT NOW if we stopped all travel. People here love their off site meetings that accomplish nothing. Big problem with travel in Saul's org. DMI to.

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Post ID: @1hkx+136c2KSv

The goal of a company is to make money and more often than not their roles are not revenue generating and must get cut.

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Post ID: @hfa+136c2KSv

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