We talk about efficiency. Do we really need the quantity of highly paid leaders and 1000+ employees in that group to manage our properties? We lease most out so why do we need so many people there?
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@1jqh: thank you for this informative post. We couldn’t go anywhere else to get this kind of insight. Interesting that they are willing to spend this kind of money on their buildings to attempt to look hip and trendy to attract and retain young talent, when there is actually NOTHING hip and trendy about Wells Fargo. Putting lipstick on a pig as they say.
I guess we can’t blame leadership for not predicting a global pandemic. On the other hand, though, we just can’t ever seem to get anything right, not that I’ve ever seen. Can anyone name anything Wells Fargo has done well? I’m honestly trying to think of something..... Focus and priorities always way off. Spending/wasting all this money on buildings and future visions rather than investing in the technology that we need today (yesterday!) to carry out the most basic of functions. Wells Fargo’s attempt to hide their poor product in fancy packaging.
Sorry, I digressed! Fun read. Thank you!
I worked on an “Initiative” and massive project titled “Workplace 2020” that tied into “Efficiency & Effectiveness 2020” approximately 4-5 years ago. Ring a bell? I was brought in as a consultant from EIT and loaned out to partner and work with CPG and several LOB’s that had a stake in the future of work and how this initiative would increase productivity within their business units. My role was to review their plans, consult and provide input on how to create their “vision” for the future of work at Wells Fargo.
First of all, they had a massive portfolio that crossed 6 continents and 136 countries. Their presence and test sites in the US for this vision and theory were Chandler, Minneapolis, Charlotte CIC, The Green Charlotte (Learning Center/Conference and Meeting Center) and lastly the future new build out of Hudson Yards New York. Now keep in mind, these are the exact “Hub Sites” that have been discussed during layoffs/forced relocation.
Internationally, CPG focused on several brand new “Swing Space Sites” and “GIC’s” (Global In House) sites across Manila and several new sites in India. Also, Project Crystal in London UK became part of this massive initiative driven by CPG. Remember this was 4-5 years ago.
During these meetings, reviews, assessments and studies conducted by several internal and external consultants from EIT and LOB Partners from most every single Business Unit, the writing was on the wall that the future was going to be offshore primarily. With the exception of London UK which would primarily be the EU Headquarters for all things Wholesale, WF Securities, IBCM and a few supporting business groups to the London location. Again, remember this was 5 years ago, before Brexit was even a word on the lips of the UK.
However, CPG began to continue to expand locations, new build outs and retro fits of additional sites to the original plan. These sites included updating every single Learning Center/Conference Center across the US.
CPG wanted the latest and greatest in technology. Video and collaboration in every huddle room, conference room with tons of touch screens and peripherals attaches to the network. For physical aesthetics CPG wanted an open floor plan concept, and the removal of all walls and any cubes, with a focus and a move to strictly “Hot Desking,” meaning you badge in and sit wherever at a long table with your peers or unknowns.
CPG literally wanted a Google type of environment, a Facebook styled environment, operate like WeWork sites to stay hip and trendy to attract and retain young talent. Seriously, that comment is in the project minutes.
First, risks were pointed out. While this concept worked well in offshore locations for customer service and call center environments, this was not a one size fits all for every single LOB, due to highly sensitive information, conversations, transactions and trading activities.
Next came the “not so s-xy and not fun discussions,” as stated by CPG leaders with zero technology background or understanding how things connect and work with out interruptions or complete catastrophic failure.
Funding was another heated discussion with CPG and partner LOBs. CPG and LOBs wanted all this technology, video, collaboration tools/devices, touch panels everywhere, real time meeting scheduling to reserve a huddle space or conference room that interfaces with 4-5 other applications that “the big tech firms have,” not understanding that what they were requesting would s— up massive amounts of bandwidth.
When presented with the Infrastructure Architecture and Network Infrastructure Engineering that would be required to implement to support their vision and initiatives, they gasped and balked at the price tag. Again, network infrastructure is not a “s-xy topic.”
So the money was allocated and spent. Where did the funding come from? Who knows. But the test sites above were all underway and some completed. Corners were cut, and come to find out, the network infrastructure and interfaces between applications failed and failed miserably. Nothing worked.
Last year it was announced that Wells Fargo was pulling out of Manila entirely and focusing on India. All that money wasted due to tax incentives and credits with the Philippines that WF was no longer receiving after a huge push and investment to create this mega campus in Manila. WF was screwed and left holding the bag.
Fast forward to the COVID-19 Pandemic of 2020, all those spaces listed above in the US and International are empty. Sitting, collecting dust. That initiative and that vision? Worthless today. Everyone is working remotely.
Now CPG is in a scramble to go back to the drawing board to revise those sights for work during a Pandemic. Walls will need to go back up, everything gutted, cubes recreated and social distancing with safety measures put into place for the new normal and future of work during and after this pandemic.
In addition CPG is trying to get as many sites closed permanently and get the bloated real estate portfolio slimmed down to the bare essentials since today’s work is all remote.
So, will CPG be reduced in size and headcount? Yes, once those properties in the portfolio are gone, leases not renewed and buildings sold off.
You guys are delusional if you think that asset cap is going anywhere this year and that wfh is gonna be permanent. that’s hilarious. they may be more flexible with non lob or customer facing teams and thats about it. as we all know, they have plans to cut costs in leases and no they cant close a building and lay off everyone there. that isnt aligned with BUSINESS CONTINUITY. Risk and Compliance are too big and frankly they make as much as some attorneys. there was a consent order to beef up our legal dept and we aren't anywhere near where we are supposed to be to mitigate risks. they will renegotiate that and pause hires but they are desperately needed. more than cc/risk needs eyes into ops
I do try to be objective, but whoever is in charge of property management for Wells Fargo, whether it be a WFC employee or CBRE, should be shown the door. (Sorry -I’m sure it comes down to limited budgets set by our leaders.) I work at the Home Office for WFA and all cleaning/ maintenance is at the bare minimum. You’ve heard it all here before, but it’s sad what they’ve allowed to happen to our building and the surrounding property. There is ALWAYS at least one elevator out somewhere, one automatic revolving door stuck somewhere. (You have to have to know multiple ways in an out of the building.) Mice, smelly bathrooms, multiple broken toilets for weeks, false fire alerts over the PA (every one just ignores them now) thick layers of dust everywhere, torn stained carpets, cracked pavement outside, minimal salt on steps on winters days, atrium leaks when it rains. It’s bad. There are some areas, that the firm seems to be proud of such as the main lobby and the newer cafeteria or the gym or the courtyard, which are pretty well taken care of. But the care for the rest of the compound is just embarrassing.
Every dept is bloated.
What I'm wondering is if Work From Home becomes permanent, will WF pay its employees rent for the space they're using at the employees' homes?
It seems like any changes to that org would be in a holding pattern until decisions are made about work post COVID. If it is decided we need fewer properties, decisions about who stays could be pretty easy.
: @shl+16XdfZ3m
Control is going to take a haircut soon (before November). Then after the AC is lifted it will be gutted.
It's going to get U-G-L-Y just in time for the holidays.
Corporate properties is really small potatoes. Risk management is 11 times their size. You could save all of Corporate properties just by cutting 20% of Risk, and that doesn’t even include the enormous quantities of people in “Controls”.
Teamwork doesn’t show the entirety of it. We use third party vendors for a lot of the on site management. We have two folks who work for JLL in our office. They report to a manager at JLL. That manager then reports to Someone in CPG.