On this day, 11 years ago I was part of a lay off with Wachovia.
Tuesday, October 27, 2009
It was unexpected and I was blindsided. Just a month prior I remember sitting in a LOB meeting and being reassured by leaders that there were no anticipated layoffs. All is well they said. We’re coming back stronger. Our numbers were fantastic.
Imagine the lump in my throat when my director called me into a conference room and handed me a blue folder. I had just been assigned quarter 3 and quarter 4 projects and finalizing the 2010 future projects and initiatives.
A year prior in 2008 Wachovia had collapsed and was sold to Well Fargo, even though we thought we would be sold to Citi. I still have the newspaper full page ad of the Wachovia and Citi announcement. I remember Associates and Analysts literally typing their resume in September 2008 and boxing their or bagging their personal items and walking off the floor and out of the building. They were young and were taking opportunities elsewhere. One guy took a ficus tree with him. Left behind were their badges and laptops.
I had almost 9 years with Wachovia, my anniversary date was December 2000. On October 27, 2009, I received a generous package of the 60 day notice with 30 day working notice, which I didn’t have to work. I received full pay for 9 months, including all benefits. A total of 11 months.
I was depressed. I was shocked. I was angry. I was sick to my stomach. I was scared. I was afraid of losing my house and my car. I was afraid to lose my medical benefits. I was overwhelmed with anxiety. I couldn’t sleep for days. If I did sleep I was awoken with a jolt of fear and doom.
Whatever happens today, I need each of you to remember that this too shall pass. You will grow from this experience. You will realize that you are resilient and resourceful. You will be stronger for it. Faced with adversity and the unknown of my future only made me flex and strengthen muscles I didn’t know I had.
After I gave myself time to grieve, I remember thinking, “ I’m off this bull$hit and back on my game.” I searched relentlessly for a new position internal and external. I interviewed nonstop. Not everything came to fruition whether it was 1 interview or 5 interviews for a single position. I called up those former Associates who departed and started networking and putting out my resume.
It wasn’t until March 2010 that I was able to land an internal position. I know, dumb move on my part, going back to the false security of Wells Fargo. I packed my bags and headed to NYC, that’s where the job was and it was a much better position and three times the pay.
Early on in September 2008 and the following year, I remember 15, 20, and 30 year colleagues in turmoil. You see, their entire 401k portfolio was not properly allocated and balanced. Everything in their 401k was Wachovia stock. They lost it all. I remember tears streaming down one mans face. He was 2 months from retirement. He built a cabin on the lake. He financed his kids college education, he just bought a new home. Boom! Completely wiped out. I thought he was going to have a massive stroke or heart attack.
Here’s a similar story for reference:
The Wachovia share price dropped from $56.50 in January 2007 to $5.80 when Wells Fargo took over.
Wachovia’s share price reached as high as $59.85 in April 2006, only to plunge by more than 90 percent to $5.80 when federal regulators approved Wells Fargo’s deal.
Jerry Wheeler, who retired from Wachovia after 30 years in June 1999, epitomizes the plight of tens of thousands of the bank’s current and former employees.
“When I retired, I had about $400,000 in my 401(k),” Wheeler said. That account, however, consisted solely of Wachovia stock — slightly more than 10,000 shares. Friends told Wheeler to diversify his portfolio.
“Since I was only 57 at the time, I elected to leave it with Wachovia,” Wheeler said, noting that the 401(k) was worth about $620,000 before the sinking of Wachovia’s share price began in early 2008.
When Wachovia was sold to Wells Fargo for $7 a share, Wheeler’s 401(k) was valued at $70,000. Then, when Wells Fargo’s share price dropped to $7 a share during the Great Recession, the 401(k) was worth just $14,000.
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As a lesson and word of caution, I suggest everyone log into their 401k account and reallocate and rebalance your portfolio. Dump and get rid of any WFC stock and transfer into funds that align with your future retirement goals. Since 2009 I have never held WFC stock in my 401k. Any stock award or yearly Employee Award given I immediately converted to the funds of my choice.
In 2017 layoffs were happening again due to offshore ramp ups and the banking scandal debacles were never ending. My position was eliminated because they could pay 8 people in India and the Philippines what I was making. Luckily before the Federal Sanctions and asset cap, this time I was able to negotiate a 24 month package.
I wish you all the best. You are all in my prayers. I promise you that it will get better. These are very uncertain times, but please uplift each other and show compassion and empathy for those struggling with an upheaval and unrooting of what they thought would be a future of stability.