They need to start by laying off all the overpaid Wholesale associates who were hired under the consent order and literally sat around for the last two years doing next to nothing.
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Exactly which “associate” job family are you referring to? I’m in Wholesale and the front office team members with “Associate” in their title have worked tirelessly for the past 3 +/- years starting with the infamous M3 project. They’ve been cleaning up their predecessors’ disastrous mess at the expense of the customers, their families and their physical/mental well-being on systems that can’t keep up and processes that are ineffective. Not to mention, the many (not all) inexperienced and/or incompetent TM’s in WFCO they have to deal with on a daily basis that are better compensated.
They’re short-staffed and underpaid. Most aren’t even at midpoint. So, I hope you aren’t referring to THOSE associates.
80k is probably just right. Here is my estimate:
1) 5% of all FTE rated 1 per the forced distribution
2) 15% of all FTE rated 2 per the forced distribution
That’s almost 53k based on “performance” alone (20% of 260k FTE). On top of that add:
3) contractors who will not be renewed - guessing 10k out of who knows how many!
4) Voluntary turnover of performers (3’s, 4’s and 5’s , i.e. 80% of all FTE in the forced distribution) which will not be backfilled. Let’s say 8% voluntary attrition annually - that’s another 16k (260k x 80% x 8%)
You can get to 80k pretty quickly.
That is in my estimates saves $7B of the $10B needed to meet the expense reduction targets.
The rest will probably come from real estate simplification (less branches, less leasing, less insurance) and consulting projects being eliminated.
Any thoughts ?
@rpj link?
Read somewhere on Reddit total # of headcount to be eliminated is going to be around 80K. This is across the organization.