RV has executed an aggressive labor overhaul, gambling that a mix of heavy offshoring, headcount reduction, and rapid AI automation can replace deep institutional knowledge without destabilizing operations. This approach has successfully optimized the short-term bottom line, but signs of friction raise the question: is this corporate strategy starting to fracture? Although this aggressive cost-restructuring has yielded spectacular short-term financial performance, industry observers are increasingly asking if this high-stakes gamble is sustainable.
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@aj Most outside tech saw the impending train wreck, including major clients in Wove’s pipeline. Some even took their frustrations to RV. The vision was solid, but the tech stack and its implementation ultimately doomed it.
Analysts are actually citing BNY’s statements on AI while reducing head count as a sizeable risk. And rapid AI automation? Not here. Not currently anyway. The fact is, payroll and benefits reductions are really the only tool in RV and the board’s garage. And as others point out, it’s unsustainable. As for WOVE, it’s a black eye for the firm. Clients know it and they report on it.
Wove was smashed to bits on the rocks of the bad underlying tech stack (incl Account Services, a huge POS), it was not due to P-M. The new leaders that were brought in weren't great, but they couldn't do anything about this original sin. If we are not honest, we will never fix this place.
The structural collapse of the Wove platform underscores the vast gap between an elegant platform operating model in theory and a messy, rushed implementation in reality. Executive leadership got the lean tech model they demanded—but they are discovering the hard way that cutting corners to force a digital transformation destroys structural stability. Be careful what you wish for, DM!
Of course it’s not sustainable. This is a short term “pump and dump” designed to reinvent a sleepy custodial bank thru McKinsey-recommended reengineering, rebranding and headcount laundering strategies.
Now that Wove is kaput, RV will struggle to find new traction to sell new and renewal customers on his hyped up lies.
Look for accelerated cost cutting friction and increased offshoring to global hubs in Pune and Wroclaw to drive financial results.
The side effects will be more churn - internal chaos and client frustration. Imagine that!