There was an email out today in retail CS&S. Reqs will be closed. Roles will not be backfilled. What are the latest news from the other organizations ?
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Everybody is talking about layoffs but does anyone know if the reason behind this is drop in stock price or they will be integration related layoffs?
For every $100B that SCHW has to borrow, you’re looking at an annual interest cost of $4B-$5B. A drop in rates may reduce that bill, but while Schwab may have access to unlimited liquidity, they cannot afford endless destruction to their balance sheet either.
Of course they care about integration. A schedule has been published to the Street and the public and. Plus it will result at minimum of $500-600M in yearly reduction in expenses. The Street and management care about that.
Even more worried about getting cut in June and trying to find a new job in Q3-Q4. I had a feeling this would not end well.
Assuming the rumor is true, a 15% headcount reduction would equal close to 5,000 associates. My guess is anyone that was below meeting expectations on last year’s review should get ready to be on the way out, and fast.
There is a rumor that the cuts will be massive, at 15%. It will be across the board, but STS is expected to be hit hard. Timeframe is June. Good luck everyone. I would suggest if you need to, start taking care of any health needs you have now. You will remain on payroll with benefits for 60 days after notification. You can also consider upping your 401K contributions to try to max out your contribution limit. Good luck.
There is a rumor that the cuts will be massive, at 15%. It will be across the board, but STS is expected to be hit hard. Timeframe is June. Good luck everyone. I would suggest if you need to, start taking care of any health needs you have now. You will remain on payroll with benefits for 60 days after notification. You can also consider upping your 401K contributions to try to max out your contribution limit. Good luck.
Leadership was naive to think people would bend over and take it at 0.45% interest when money market funds are paying 5%. Even if we cut 100 basis points tomorrow, 4% is still an attractive offer. The interest rate trap is bad news, and there’s no good options. Job cuts may temporarily stop the bleeding, but it’s a bad situation. Sooner integration is over the better.
We are f u c k e d. Have a good source that they don’t really care about integration, it’s survival mode now so June cuts are going to be massive.
How effed are the next few quarters going to be? Layoffs across the board? Just in the bank?
Since you asked about "other orgranizations" I left Schwab a year ago this week for a tier 1 "Hardware c-m services vendor" and we're freezing reqs, not backfilling positions, etc. I think large companies are still "Waiting for the recession" and trying to batten down the hatches. My $0.02 US.
Totally agree, Simon has totally drove the organization into the ground. Mr Flip Flop
I&O are the biggest a s s clowns in all of Schwab. Poser technologists with the head noodle at the helm. S i m o n is the biggest. I D I O T in fintech. Please pay me off in June so I can have an extended summer vacation.
We were already rail thin on headcount. But looks like a hiring freeze until well into next year. All new project spending is pushed back a year plus.
It's amazing how leadership continues to say one thing while doing the opposite.
Schwab is a stale organization run by stale leadership who only care about their retirement
Can’t wait to see how many potential layoffs we are looking at in June after the May conversion.
financial discipline? you mean when our I&O teams travel every week to offsites? $2000+ expense reports per person, guaranteed. add that up. hypocrites. noodle on that, will you?
What do you mean another bailout
We’re quickly seeing how painful 5% interest will be to the P&L. To borrow $100B from the feds costs $5B a year in interest. Schwab’s net income last year was just under $7.2B and their year end shareholder’s equity was $36.6B. Cutting $1M in headcount spending by closing open jobs is the equivalent of saving $20M in borrowing. It’s an ugly game of chicken and we will see if Schwab can pull through or require another bailout program from the Federal Reserve, a dilutive sale of equity, or a merger with a better capitalized firm.
Didn't this go out to all exchange users 1.5 weeks ago?