Looks like Wells wrote off $718 mill for severances in 3rd quarter. Average Severance is around 6 month and average salary around 60k. So, it looks like they are expecting to lay-off around 20,000 employees as of now. Unless they will write off more in 4th quarter for severances.
“The net income figure included $1.2 billion of operating losses, "largely due to customer remediation accruals," the bank said, as well as $718 million in "severance-related restructuring charges."
That number is quite high. If using the aforementioned 100k cost, that is still over 7000 people laid off. That doesn’t seem correct.
When you lay people off, you take a one time charge for separation benefits (severance, career placement services) during the quarter that you eliminated those positions so the $718 million in restructuring charges includes these one time charges.
Well has changed reporting of staff levels to show active employees as of that date so 274,900 as of Sept 30, 2020 probably includes people still on working notice since they are still working. I am sure the Dec 31, 2020 number will reflect the impact of lay offs and people no longer in the required notice period.
The cost of an employee is more than just their salary. Health benefits, taxes, 401k match, etc etc. Laying off a 60k salary employee probably saves the bank closer to 100k
Boo hoo, Wells did massive crimes and Warren did her job.
Waaaa, ahhhh waaaaaaaaa.
Put the blame where it belongs, it's hard to take your opinions seriously when you blame the wrong people.
We all know you know better, you're just playing the us against them game.
Boring.
: @kri+17qFLI9R. When I say 60k per year average that an employee makes. Just because someone like Jamie M was laid off doesn’t mean she got 9 mill.
Please. Let people volunteer
J Rowe and J Moldafsky made 6 mill and 9 mill both were laid off. Far cry from 60k. G Korotzer 1 mill salary also let go. So the math doesn’t add up.
@sfh
You're a GD fool. Please tell us how those elected leaders forced Wells Fargo to act deceptively.
unless the money hidden behind this number was used on signup bonuses for JPM newcomer friends of the CEO
Who said that's the first severance charge. I wouldn't use 60K. They are cutting mid level management, use more like 180K. Understand this though, we're going to have to come in around the headcount of BOA or under, they're at 200K heads, so figure more like 70-80K heads cut. Maxie Pad Waters are her angry gf Liz Warren just caused a whole lot of people and their families to suffer.