https://www.google.com/url?q=https://www.desmoinesregister.com/story/money/business/2023/07/13/wells-fargo-ends-incentive-agreement-with-des-moines-as-employees-set-to-leave-town/70405645007/&sa=U&ved=2ahUKEwiJnqPm-4uAAxWsk4kEHauWD90QFnoECAQQAg&usg=AOvVaw21-hB4b0OEzQEm7XoyKyiS
9 replies (most recent on top)
Is math that hard? If you layoff 37 employees that make $100k, then you break even. That doesn't even include the couple million saved in occupancy costs tied to the two buildings.
No JC cannot hold that many. It's 1.60 humans per desk that they are planning.
Yes JC can hold that many
Deals like this and encouraging attrition are the only reason for the militant enforcement of RTO. It has nothing to do with the fake reasons our so called leaders regurgitate when asked. It's simply a lie, which is why I have no respect for them and have stopped listening to their BS.
Hundreds of layoffs happening all over the WF. But they are not announcing loud.
The article says there are 11k employer, can the Jordan Creek building hold that many?
Where the CEO wants to take this bank is largely non-viable, but that won't stop him trying and firing most of the domestic workforce on the way. The problem for us in the long term is that once you exit these businesses, get rid of the knowledgeable people who have critical connections with customers etc. that it would be very expensive to re-enter.
Des Moines is where they do mortgage business, which Charlie Scharf already said is not a strategic priority for the bank. He said it's not high enough margin; he wants this to be a high wealth bank that makes money from brokerage business in NYC, not middle America home loans and personal banking. He reinforced that as recently as January 2023.
So to Charlie a few million is barely even a rounding error in his grand plan to exit the hundreds of billions of dollars of mortgages the company used to write every year. The real question is whether enough rich people really trust Wells Fargo enough to swing their corporate accounts over and do UHNW portfolio management with WF.
I sure wouldn't trust Wells Fargo with even my middle class checking account, much less a government, corporate, or UHNW account. We'll see what the future brings for WF. At this point Scharf has already made 9 figures as CEO, so it doesn't even matter if WF goes bankrupt, Scharf is already a 0.01%-er.
However for everyone else it's going to be a shame if the company that used to stand out as a bank that cared about middle America turns into yet another Lehman Brothers by chasing short term profits.
It'll be recouped in lease savings by having employees populate the large Jordan Creek campus in WEST DES MOINES.