If there are huge layoffs coming, why is it so quiet? It seems that it still must be at the highest level of the company, and middle managers don’t even know the specifics of what is coming? Are there managers out there that know the specific details of what is coming? Why has nothing leaked yet?
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Wells not even close to the largest layoffs of 20th century... not even in the top hundred thousand layoffs and nary a lay-off. That article isn’t even about the 20th century.
https://moneywise.com/a/the-biggest-layoffs-of-the-century
" Thank goodness, the new CEO and his hand picked team have no loyalties to anyone here other than fixing this bank."
Hilarious.
Charlie's loyalties are with his bonus/options structure.
Painting him as a saviour is laughable.
There are so many posts over the last year about Wells needing to cut payroll to fall in line with other banks.
In fact, there's been so many, I'm starting to smell stock manipulation.
Somebody wants layoffs because it will boost their bank account.
Lay-offs will be decided top down - somewhere between 25k-40k and mostly middle and upper management who have too many layers hopefully. We are too fat. I just hope the most senior folks knows how to figure out how to find the “do nothing” people for most of payoffs. Reorg in feb this year was decided and announced. Many EVPs didn’t even know ahead of time.
Californians have been dealing with job security issues for years. Unfortunately it’s now impacting everyone else. Buckle up and hope for the best.
Charlie’s reputation and neck is on the line, of course he’ll bring on people he knows and trust. He doesn’t want to be called to congress to testify.
Thank goodness, the new CEO and his hand picked team have no loyalties to anyone here other than fixing this bank.
These career WF leaders/old timers better be getting their resumes in order. Do not think for a second that Charlie and team are not looking at every area of this bank for places for improvement and areas where "talkers" can be replaced with "do-ers"
Most managers even at the EVP level do not know where they stand necessarily with the new CEO and his close confidants. Notice all the new executives at the highest ranks. There is a shrinking number of very senior and long tenured management in place. The top is calling the shots. The CFO even admitted as much in the latest morgan stanley investor conference. Our efficiency ratio is simply way above where it needs to be (approx. 70% now, needs to be 55%). The single largest expense in any bank is salaries/personnel expense. This is where massive savings will come from. The CFO estimates that net interest margin will drop 11% vs. last year. To offset that in EPS, there needs to be a balancing offset of minimum 11% in expenses.
The problem is that with the asset cap, growth is restricted. As a result, front line revenue generating positions are constrained in generating revenues for the bank. Top talent has been defecting and, unfortunately, more seasoned folks are staying around waiting for a package. The bank is not retaining top talent and not attracting top talent from elsewhere, given reputation issues and asset cap. The result is a drop in the quality of the workforce in the front lines. I think the reductions will come from there- front line team members.
The tech, remediation, compliance groups, etc will see few layoffs. Wells has a systems issue and reporting s—s and is not reliable. Wells Fargo's best days are behind it, unfortunately.
He destroyed BNY Mellon and he will do the same here!
One day later and Charlie's team count is down from 276,198 to 276,111. It might be interesting to track this number over the next few months to see how the head count is actually trending.
Thanks Einstein for explaining about the entitled people, I am guessing you are one of them? There are definitely people here who can go, but it was WF management that made the decisions to hire them and likely the useless ones will make it through as they have survived through tons of these re-orgs from what i hear, if nothing else they survive the system, so meaning WF will lose the good workers and keep the useless ones once again.
a 10-15 percent reduction could easily take care of the people who are doing nothing (and I agree there are a decent amount) 20-30 percent is a massive layoff and would question whether wells could actually meet its regulatory obligations (there are more than enough to make your head spin ). There are meetings with the new control exec coming up and I’ll let everyone know what is said (for those of you in risk)
a 10-15 percent reduction could easily take care of the people who are doing nothing (and I agree there are a decent amount) 20-30 percent is a massive layoff and would question whether wells could actually meet its regulatory obligations (there are more than enough to make your head spin ). There are meetings with the new control exec coming up and I’ll let everyone know what is said (for those of you in risk)
Oh yes you are absolutely correct. I should disregard taking care of my family, providing a house, food, etc and worry about WF future and their shareholders making money. Especially with the worst negative news list of any other bank.
This has got to be the largest group of head in the sand, entitled and ignorant people here are WF. All you people think about is your job and not the long term viability and health of the bank itself or its shareholders.
Does anyone not see the regulatory issues we have been dealing with and their root cause? How about the financial aspects? Do you really think we need 250,000+ employees?
All people do here is talk and go to meetings to talk about more meetings. Multiple layers of useless management at the lower levels, people who deliver nothing, people who talk about creating work that no one is asking for, people who frantically try to look busy while accomplishing nothing. Managers and employees who fail and who are simply reassigned to something else to repeat it all over again.
Wells already in the largest layoffs of 20th century in 2018, hopefully this one doesn't move them from #12 to #1
https://moneywise.com/a/the-biggest-layoffs-of-the-century
Shrewsberry already publicly announced a layoff in mass, not sure he realizes the whole company saw it or not. This place spent too much on new executive types, once the feds wake up i am sure this summer they will have some opinions on this to share with the company. I doubt they will appreciate it, while Wells is causing more economic bombshells to the National Economy overall by laying off tons of lower waged employees for some execs that do not provide any ROI and no improvement to the company seen anywhere.
Wells Fargo has paid 20 billion in various fines and penalties since 2000, there is a website that tracks this.
Employees cost 32 billion every year.
Whatever mistakes management has made, employees are going to be cut regardless.
Prepare yourself for this possibility. Your opinion about the company got here won’t pay your bills.
At a branch level it has been very quiet..leadership calls getting cancelled within my district every week. I’m sure this will happen until the news breaks
Minimum 20%. Managers aren't choosing who stays and goes.
ER frantically putting together packages.
Believe it. Between July and November, this is happening.
(I care, therefore I share.)
"The banks expenses are too high as a percentage of revenue. Think what you want, employees are the biggest expense."
Haha WRONG
the banks biggest expense is managemrnt f—ups.
like not doing your due dilligence on 3rd party risk getting sued and USAA winning bigly
or pushing fake accounts so f—ing hard and getting caught so red handed fed puts an asset cap on your a–
or reporting bogus numbers to OCC so bad you get an F grade and further restrict your growth
all this reeks of really bad management and ALL HIT THE EFFICIENCY RATIO
But you wanna know who pays for managment f—ups? employees. Managment gets stock options and perks. Employees get layoffs.
Most employees won’t know they are being laid until they are told with a date and the whole process laid out. Intelligent leaders keep layoffs very close to the vest. With as big a company as WF is, there will be many parts of the organization working to make layoffs happen- benefits, payroll, security, HR, Legal, Communications. But the knowledge of exactly who is being cut and when will be held very secure until the last minute to avoid morale issues, bad publicity, bad actors, and interference.
I believe Shrewsberrg when he publicly says the company is working on getting its headcount as lean as possible. I don’t know what percent that means and in what timeframe. Five, ten, fifteen? More? By end of this year? 2021? No idea. I’m not in the know.
From where I sit the company still has a lot of work to do from a automation standpoint before it will see any efficiency gains reducing headcount. But the numbers don’t lie and many people have pointed to headcount numbers much larger than competitors. Public companies are about one thing: making money for shareholders. And they usually prioritize the short term over the long, since shareholders reward executives for acting that way.
There will be layoffs. That’s a sure bet. The scope, size and timeframe? We’ll know when we know.
Post your facts about layoffs that you seem all too aware of or go. If I had to guess I’d say you sound like a typical, bitter tech troll.
Well you can look up Charlie Scharf in Teamworks and next to his name it say 276,198 total team. Contractors don’t show up in the numbers/org chart, so technically more people work here than that.
So either you don’t know how to use Teamworks, don’t work at Wells Fargo or think that Peoplesoft is reporting phantom numbers.
Either way, you seem to be in denial. Doesn’t matter to me at all.
I ain't ! I ain't !! I ain't !!!
Wells does not have 275000 employees. Also, there will be cuts but even IF it’s the 20% someone said in here (which I have a hard time believing and have seen NO definitive statements on) it would have to stretch out over years and years. Natural attrition will come into account at some point and positions will not be backfilled. Branches are going to close in that time and support staff will go, technology changes will happen, outsourcing will happen.
Bank of America - 204,000 employees, 57% efficiency ratio
JP Morgan Chase - 189,000 employees, 55 % efficiency ratio
Citibank - 204,000 employees, 57% efficiency ratio
Wells Fargo - 275,000 employees, 66% efficiency ratio
The banks expenses are too high as a percentage of revenue. Think what you want, employees are the biggest expense.
@1tvl+15AJ77lo Do you have any substance to add or did you just post up to snipe and sprinkle your bitterness? Even if people are trying to be positive why bother being snarky? Post up real facts or numbers or leave people alone and spread your negativity elsewhere.
Sure everyone has heard the term, “calm before the storm”. It’s quiet for a reason. Mgrs already planning who to keep and who to boot. A matter of time before cuts come. Soon enough.
@1tvl Not sure that I ‘m understanding what you’re trying to say.
Oh, you poor people. If you're using His terminology of "spans and layers" you're well on your way. I know of what I speak. Good luck.
I am not sure where people are getting the statement of “20% or 30%”. Maybe I’m missing it but I can’t see how an exec saying “substantial” translates to a specific percentage that is being discussed on these boards. Reduction in force - I see that with the “spans and layers” as well as the discussion of automation, etc. But it seems quiet a bit of hyperbole mixed with panic is happening. Just my opinion too though.
I think it’s odd that it’s quiet as far as what upper management is saying to employees too. I think part of it could be there’s a disconnect since so many are working from home. But it’s out there reported by trustworthy news services. Google: Wells Fargo Layoffs Shrewsberry. Our CFO made the announcement on June 11 at the Morgan Stanley Virtual U.S. Financial Conference. I guess judge for yourselves whether you want to believe it or not.
I have a good friend who works for another large public corporation. She was involved high up in major layoffs that took place there several years back. I don’t agree ethically with this philosophy, but she said that management has to walk a line between appearing to be transparent and not saying too much too soon. They know layoffs are demoralizing and they want you to keep on working hard. Many people will not put in their full effort if they think they’re on their way out the door.
The talk of lay-off impacting tens of thousands of team members is simply not true... fake news. Yes, there will be some staff reductions, but it will not be to the scale that many have speculated. There are many people stirring the pot on this board. All to be ok.
???
Your 2-up manager may not even know what is going on.