Mandy Norton just sent out an email asking Risk team members to fill out an activities survey so that they can identify what everyone is doing for work, and to eliminate duplication via head count reductions. Be careful what you put on your survey! They don’t care about getting the regulatory work done right. They are desperate to cut costs even if it creates compliance violations down the road, because there is not enough staff to do the work in the right way. By the way, Mandy has a bunch of direct report managers with less than 7 direct reports. More like 1, 3,4 direct reports per manager. Talk about inefficient. Price Sloan is more qualified and can do her job and his current job. There is an efficiency head count reduction for you Charlie!
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I agree! I think she is feeling the heat. That is why she sent out her email touting her accomplishments over the last 2 years last week. Powell was brought in to be Scharf’s backup and eventual replacement. Price was brought in for the same reason - back up to Mandy and replacement.
Mandy will cut everyone she can, then as the poster noted, will be cut and replaced by Price Sloan. She is just too arrogant and pompous to realize her fate.
We’ve been hearing rumors that there will be massive cuts in Mortgage Servicing once COVID is over; that they planned the cuts for this year, and COVID placed them on hold. A lot of those jobs have already gone overseas the last few years.
can you imagine WELLS FARGO reducing headcount in RISK AND COMPLIANCE. if I was the OCC I’d be all over that like white on rice.
Here’s the full article:
Wells Fargo’s cost-cutting efforts will include layoffs, most likely by the end of the year, Chief Financial Officer John Shrewsberry told investors at a Morgan Stanley conference Wednesday.
“We now have the fact that we're in a public health crisis, and we've committed to keep people on while that is true. But there will come a time, I assume at some point this year, when we get back to executing on programs that are in place, and some that are still under development, that are designed to get our total expense base, which for us means our total headcount, to as lean a state as we can responsibly operate,” Shrewsberry said, adding that automation and other changes can also contribute to expense cuts.
He said CEO Charlie Scharf’s focus now is the “risk and control work” that regulators require.
“The playbook is thickening for how to become as efficient as we can be,” Shrewsberry said. “Charlie thinks about this as going business by business and understanding who the most efficient and admirable competitors are by component piece of our business and charting a course to get there.
“We’ve got the same scale as the most efficient players do,” Shrewsberry said. “There’s no reason that we should operate in a less efficient way.”
Investors are watching closely to see how quickly Wells can boost its operating efficiency. The bank’s efficiency ratio, which is noninterest expense divided by total revenue, was 73.6% on March 31, compared to what JPMorgan Chase call its "managed overhead ratio" of 58%.
The Wells executive said it will take time to achieve the company’s cost-cutting goals.
Wells Fargo declined to comment further, when I asked Wednesday for a timeframe on the layoffs, what areas of the bank will be hit and in what cities the job cuts will occur. Wells Fargo employs 263,000 globally, with 14,500 workers in the nine-county Bay Area.
Wall Street was more concerned Wednesday with Shrewsberry’s warning that its second-quarter loan loss provision will exceed the first quarter’s set-aside of $3.8 billion for future loan losses as the nation slipped into recession.
“The severity of the economic forecast is a big part of it, but we will be providing more in the second quarter to make sure that … we’ve got the full coverage for the losses that we can imagine,” Shrewsberry said of the second-quarter reserve for future loan losses.
On Wednesday, Wells Fargo shares closed in New York at $29.71, down $2.92, or almost 9%.
Shrewsberry also offered some insight into mortgage forbearance requests at Wells, which are running higher than the national average. The executive said that figure, covering Wells Fargo’s mortgages and those it services for others, reflects in part the large number of first-time homebuyers getting loans backed by Ginnie Mae and serviced by Wells.
He also said that Wells intentionally made it “really easy” for borrowers to request forbearance as the Covid-19 outbreak spurred the economic downturn. Some borrowers on forbearance are still making their mortgage payments.
“We’ve received requests for forbearance relating to 12% to 13% of mortgage balances,” Shrewsberry said. The number of mortgages in forbearance climbed to 8.46% of all mortgages, the Mortgage Bankers Association said June 1.
The Wells executive said some borrowers requested forbearance to conserve cash but some are still paying on their mortgages.
“It’s not as though all stopped paying,” Shrewsberry said.
Does anyone have the text and want to summarize what the body of mandys email said?
Lmao! On the survey responses. Yes, I figured they would gut Risk, SLOD like a fish. I have said for years there is too many ppl in SLOD. I worked in internal audit and so many issues we had to report bc the SLOD would not call it out. Get out, whether you are in 1st, 2nd or 3rd line, find a new job! Fast.
I don't know anything about this situation in particular, but based on past experience where I was involved in layoffs at another company - make yourself look as versatile as possible. So they can stick you here, there, or anywhere. It's not about what you're doing now, it's about what you'll be doing after the cuts. Make sure you can be slotted into as many spots as possible.
So how does one fill out the surveys? Do you say you can do everything or just say what you really can do? What's the best approach / hedge?
Can someone post the text to the bizjournals.com article?
lean and mean!
@zbx+15ozHPFy you will probably get a promotion
https://www.bizjournals.com/sanfrancisco/news/2020/06/10/wells-fargo-signals-substantial-layoffs-ahead.html