Is it poor judgment or financially strategic?
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Back in November I prepped for these days and started an online business I can leave right now but waiting to see if I can get a package. But come layoff day I’m leaving with or without a package. It feels good when you don’t have to rely on these firms for a paycheck. They need to hurry up and just get this done.
I know it's easy to call EC mo--ns, id--ts, etc... but let's be real here. They know EXACTLY what they're doing. These guys got to where they are because they're intelligent and more likely than not, devious aholes.
Let's not forget about the various studies around executives and psychopathic tendencies.
https://www.forbes.com/sites/stephaniesarkis/2019/10/27/senior-executives-are-more-likely-to-be-psychopaths/?sh=1ef468ea47c4
Interesting bit from the article:
there were not only issues for the staff, such as bullying and staff turnover, but for the organization at large. There was a decrease in revenue under his psychopathic leadership, a decrease in employee creativity, and a decrease in innovation
I'll take "financially strategic" for $500 Alex
It's 100% a mind game. They are hoping to cull some of the herd via natural attrition which will help reduce the cost of the layoffs that they will have to eat in Q4 (and maybe beyond). Just sit tight, and don't give in. If you are going somewhere else, you might as well get paid to do it. You'll get severance and pay/full benefits for the next 60 days. If you find a job in that time, guess what? You'll still get severance and the remaining portion of your 60 days of pay as a lump sum. It's a win/win. Don't give in to the mind fu-k game.
Companies do generally disclose the information to their employees prior to the K-8 filing but typically it’s not A MONTH before. They’ve done nothing but create so much additional anxiety, it’s sad to see people on these boards every Monday asking if anyone knows about cuts happening yet. I truly feel EC is either incompetent or a bunch of cruel psychos playing mind games with us.
The SEC requires public companies to disclose unexpected material events. Hence the recent 8-K filing Schwab made announcing cost cutting. Companies will generally inform employees before they disclose it publicly.
Hired in remote - now they want me to drive 1.5-2 hours a day 3x a week to sit in a cube on Teams calls… Oct/Jan - whatever. Message received. I’m out as soon as I can find a company that I think might be able to abide by the remote agreement and makes sense for me and my family. Severance would be nice, but bonus isn’t big enough to stick around for. Level 59 here.
Transparency. I’m happy we had a lot of notice. I almost upgraded my house but put that on hold. Also cut some discretionary spending, just in case.
Have you been under a rock? The signs have been there for more than a year with reduced head count, hiring freezes, travel restrictions, macro economy, etc. maybe you shouldn’t be in financial services if you didn’t see this coming.
I think the cuts are deeper than originally planned but it was always going to happen.
glad i sold a bunch of my espp at that time!
It has more to do with quarterly results. The stock went up by more than 10% on that day.
@ogb+1ofhf5SN No one I know has quit. Why leave and miss a severance package? smh
My best guess is that they want people to quit. They want this for 2 reasons:
- They don’t have enough space for all employees when it comes to RTO
- They’ll save money on severance packages when people leave vs being laid off
This doesn’t really make logical sense (I.e. losing high performers, decreasing morale/productivity etc), but that’s how several people I know feel about it
Both