Go to page 17 it lays out a pie chart of areas for cuts. 35% of the 8Bil goal will be accomplished through “Organizational Structure Optimization” aka layoffs. Thoughts?
Www08.WellsFargomedia.com/assets/pdf/about/investor-relations/earnings/fourth-quarter-2020-financial-results.pdf
and it's probably due to the layers of management that will result in most significant savings
because there is no clear strategy (and roadmap to it) published anywhere that backs it up. and the mgrs seem not to have a clue either.
Not sure why people are 'down voting' the comment about $100k being a more realistic number. Total compensation with benefits etc. included likely is in that ballpark especially when they are looking at cut management and IT and several other non-minimum wage roles/departments. Will some people making $15/hr be downsized? Sure, but a lot of people they are cutting are nowhere near min wage. $100k probably is a realistic average. Not a base pay, total comp.
JPM and BofA have higher deposit market share than Wells (and did before the asset cap), so I have no idea what the below poster is going on about with regards to the retail side.
Is BAC full of crooks too? I am looking for a criminal free bank. Does this exist?
Maybe it would be good for banks to put on their ads if they can support the claim
Total comp for an employee including benefits is over $100k
you cannot compare JPM to WFC. We are different companies and the businesses we are both in are very different. For example, WFC is a much stronger commercial bank, ie more robust retail branch banking presence and a more robust commercial & CRE lending presence. These businesses are sticky, yet are lower margin and consistent through cycles. Much of the personnel to run these businesses is generally lower cost since the profitability is lower.
JPM's strong suit is CIB and capital markets, ie investment bank. These businesses are more volatile in their performance and their earnings. Since these businesses are higher margin (high fees from capital markets activity), the personnel is paid more.
JPM is a "Wall Street Bank" vs. WFC is a "Main Street Bank".
Both banks have retail/commercial banking and CIB presence. The strong suit for each bank is different. WFC best bank to compare is BAC. Very similar strong suits, although BAC's CIB unit is stronger than WFC. WFC does have an unparalleled commercial & CRE lending groups.
I'd be curious to see the other post's metrics vs. BAC to compare.
@sne. That’s because most of JPs IT is in India. Just wait until they do that here and you want something done!
hmmm, maybe JP is hiring, looks like they pay better
pay ratios are here also its in filings, think its a new law.
https://greensboro.com/business/ceo-pay-ratio-gap-continued-to-widen-in-2019/article_d0280ad5-6520-5fb5-a4ff-71b8428165af.html
CS Salary : 34,300,000
Avg WF salary 2019 : 65,931
by the way that's 550:1
$2.8B savings over 3-4 years, say its 4 years.
Using the avg salary is likely incorrect, they will likely go after mid management with higher midpoints so likely slightly less heads. However using avgs that 42.5K less heads over 3-4 years, Fast case over 3 years that's 3.5K head loss a qtr, long case its like 2.7K heads a qtr. I think they said they already cut 6K heads so just more of the same for the next 4 years.
Wow .. That's insance ..
WFC -
Revenue / Employee: $223,945
Net Income / Employee : $11,506
JPM
Revenue / Employee: $405,674
Net Income / Employee : $98,617
So essentially - Revenue is almost double ; More importantly, Income is ~9x better ..
I would say the salary number you list should be higher. According to the pie chart, branch staffing is a separate number. Branch employees are typically on the lower end of the pay scale compares to the corporate employees. I would guess the number, including benefits, is closer to 75/80k.
If you want a more accurate number go to the csimarket web site. Check out our revenue per employee metric and compare that with JPMorgan's. To get inline with JP, we need to cut about 50,000.
Here’s some math to play with:
35% of cost cutting will come from layoffs
$8Bil is desired total target
35% of $8Bil is $2.8B
$2.8B / $60,000 (assuming $60k is avg employee compensation inclusive of benefits cost)..... = 46,666 total headcount reduction. The only variable here that is unknown is the average total compensation to guestimate headcount reduction target.