https://www.businessinsider.com/occ-head-warns-us-banks-against-accelerating-branch-closures-2020-7
It costs on avg 500k/year to operate a branch.
So for sake of argument & assume wrong, 2x that and say wells closes 1k branches.
How much is saved? 1Billion max
Thats only 10% of chainsaws wet dream of cutting expenses.
And like article says, banks need to be very careful with OCC as closing too many branches may result in regulatory scrutiny, & wells doesnt need any more of that.
90% has to come elsewhere.
India staff doesnt make usa wages. They typically earn less than 30k usd a year for any position, and many earn less than half that - this is what you are competing with. Short answer is, you cant compete on cost. Thats the only thing this place is interested in.
Wells already has at least 50k indian staff in india. They are counted as part of the 260k employee total reported to stockholders.
There are around 200k or so left.
At last invest conference chainsaw said that the bank is carrying an extra half billion in costs he had planned to prune prior to covid.
From the DEF-14 FILING the average emp earns about 70k.
That means 7000 emps were targeted for layoffs earlier this year, but the optics were terrible so the bank kept them on the payroll.
After the brutal capital build, dividend cut,
the continuing declining treasury yield drop, & massive wave of questionable loans, the bank is now in a race to remain solvent.
My bet is mgmt is going to do this in waves, probably 7-10k at a time, announced each quarter (until morale improves).
To get to 10b, my bet is HR will go to a third party like wework or servicenow. Core hr will only be strategy & execs.
Im guessing there will be more bizline sales like retirment services they did a few years back. They mitesell the rail business to buffett?......theres a few bucks there.
i think the bulk of the cuts are contrs & ftes.
All jpm cronies piled in cause there is a fat rotting whale carcass they can feed and profit from.
if 10k emps is about half a billion, i think cuts staff least 4B, or between 60 and 80k us based fte emps, or about 30% of the US staff. And thats in the short term. Long term its likely to be a lot more.
Looking at india postings compared to usa postings:
Most india jobs are tech, ops & bakoffc related.
Most usa jobs are cust facing.
There is incredible skew between usa listing to india listings, by almost a 1:3 ratio, and increasing.
The key takeaway for me is this - if you are usa based & reading this, you do min req'd to maintain your meets expects rating & wait for your sevr while actively retooling looking for another job. Wells isnt a place where you can grow your career.
I would also suggest picking up a second job NOW, while covid is active & workin both jobs, giving prefrc to the nonwells job. This way you have a parachute to carry you through a rough patch as the econ resets.
Like branch closures, in this political envir, wells will be dancing on eggshells with cuts. They go too big, it becomes instant political fodder &chainsaw will be going to capital hill to explain hisself.
Information Security, contractors, mortgage processors, developers, dbas, app engineers, fraud ops look like they are all going to india. These folks are definately in round 1. google wells fargo +india +jobs and see for yourself.
Last - i have read a lot of emotional posts on here. I know how easy it is to take a job loss as emotional. Dont go there; its just a job. You dont owe them sheit & they dont owe you sheit. Do what you are asked but the bare mins & wait for your severance. There is no social contract anymore between you & the bank. When the board brought the chainsaw to our roots, it is obvious to all the company does not value employees anymore, & there is no loyalty to america either. Make sure you repeat this to yourself every time you get upset.
If you want to know more: https://www.bain.com/insights/how-to-streamline-spans-and-layers/
Good luck to all, i hope this helps.