Anyone know how many of us are going to be laid off? I'm guessing 10%
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3500 will be laid off
I wanted to get laid, not laid off
OP including yourself 1.
@1shm+1oIcHjer There are 6400 people in STS alone. Way more than just 4-5k tech people. Maybe that’s the count before the TDA merger?
@1shm+1oIcHjer Go to Bettinger’s org chart on Schwab website. Now it is in the 34k range.
Isn't there only 4 to 5k people in tech side? Not sure where 35k number is coming from
3500
Let's do some math
Schwab has 35,000 employees.
Schwab also has about 7,000 client-facing roles.
Let's take those off the table
35,000 - 7,000 = 28,000 potential targets
EC said something to the effect of "We'd like to get to pre-TDA acquisition levels", of 30,000"
==== Scenario A:
(35,000 - 30,000) / 28,000 = 17%
==== Scenario B: I have no idea what the real number is but let's assume TDA had 2k client-facing roles they brought with them
(33,000 - 30,000)/ 28,000 = 11%
Personally I think the truth is somewhere around 15% with most savings coming from MD and Director layoffs
PS: I am a 60 PL Director.
3500 FTEs.
Banking sector is in real trouble. I assume SCHW will have continue to downsize.
@pnf+1oIcHjer They still need grunts to do the work, so you are not so lucky. Chances are they’ll merge your team with another one, especially if it is understaffed.
If my manager were let go, would I be likely let go as well? I know he's had trouble keeping staff because of known issues they have with him including people leaving the team and bringing issues to HR. I'm worried that puts my job in danger.
My guess is Schwab tries to over achieve and cut more than $500M.
But as our execs have said over and over…they don’t have many answers.
Also they said $500M in 2023 and “the originally identified $500M as integration synergies throughout 2024” in the Q2 earnings call.
Is the 2024 integration synergies $500M additional layoffs? Are we going through this awful layoff limbo just to have rolling layoffs in 2024? Does anyone know?
You people keep forgetting that a not insignificant part of the savings will come from real estate downsizing/sales. Saving from layoffs is probably closer to $400 mil. You also have to factor in not just base salary but bonuses, benefits, etc when calculating the savings from layoff, and I wouldn’t be surprised if that comes out to around $200k a head.
@xfl+1oIcHjer We have that many middle managers... Sheesh.
In CRM all hands Murtagh said 70-85% of the $500M in expected savings will come from layoffs and that number includes contractors. If you do the math with 85% ($425M), and if most are MDs and Ds, then closer to 5% (assuming a median total comp of $250K - tho don't know how accurate that is). My guess is 5-7% (1700 - 2450). CIO Dennis stated in all hands 5%. Wonder if each EC member will need to reduce staff by the % or if some orgs will be hit harder if they have a higher number of middle managers. Murtagh said they are targeting no more than 6 levels below Walt and people leaders need 6 or more directs (though exceptions will be made for orgs where that number wouldn't make sense). So they'll be consolidating and realigning, etc.
Less than 10% overall…. Probably closer to 5 or 6%. 20-30% of directors and MDs is pretty well confirmed.
🤦♂️
Keep hearing 5 percent here. Maybe somewhere between 5 and 10 percent? 10 percent would be in the neighborhood of 3500 jobs. Will it take that many to get the savings they are trying to accomplish?