What if the 2000+ individuals that have recently been laid off from Charles Schwab were to move all their money and 401Ks to another banking firm? If the average of the accounts (many older individuals were let go) was $1M, it would be over a $2 BILLION hit of assets leaving the company.
Since you weren’t loyal to me, I am no longer loyal to you. Ha!
You guys have a $1M in your 401Ks????. I’m mid 50s and have about $50K. Am I toast?
Given the rate at which TDA clients and RIAs have been leaving Schwab, they definitely care. As for hurting current employees, I'd suggest finding another place to work before they make that decision for you.
Layoffs like this will continue until the employees or governments(ha!) make it financially prohibitive. I have no intention of hurting individuals and instead would think that the majority of Schwab employees feel similarly about the impact that layoffs have not only on the people who are let go, but also on the ones who remain.
You shouldn't go from record profits to layoffs like this and have no consequences. I'll be selling my Schwab stock very soon and will gladly put it into a company that might actually have it's sh-t together. If you are a current employee and want to send a message, sell your stock too. At the current price, there are already much better deals out there.
'Pocket money they could care less. But if it makes you feel all warm inside go for it.'
Decades of monthly transfers gone. In an instant.
Pocket money they could care less. But if it makes you feel all warm inside go for it.
I was layed off and have no interest in moving away from Schwab at this time. Those wanting to do so just to hurt the company makes no sense to me. I still know people who work there who are fine people, why would I want to harm their employer?
Also, don't any of you own Schwab stock? Ridiculous the emotional reactions causing d-mb financial moves here.
Offshore knows how to manage the big bosses... For example at the lowest level they Offshore managers used to take the first level managers out to bars, Top golf, Pool etc... throw free food and entertainment at them... Now what they were doing at higher levels I don't know... That is why even if offshore messes up they are brushed under the carpet! Enough said.
I resigned and am moving all of my assets. I never recommended Schwab to anyone I know, I’ve always said if I had a choice my money would not be at Schwab. After years in operations I saw a lot of mishandling of accounts and too many consistent errors by offshore which were always brushed off. If clients saw all the inner workings they’d move their accounts too.
I am one of the laid off employees, Over the past 5-6 years I told many family members and friends to open IRA accounts and checking accounts with Schwab, feeling betrayed by upset management, even if it does not matter much, I am trying to convince everyone to go to other financial institutes, If all laid off employees do this, there is no way it would not matter to Schwab, they wont go out of business, but it makes it a very interesting 2024 for Schwab with potential lower interest rates, Same as what happened to Google and their stupid claim of Google employees being lime a family, Schwab’s reputation of being a nice company to work for and rare layoffs are stories in the past,
One person can not do much, but I do my best to sc--w the company that destroyed my sleep and gave me so much stress right before thanksgiving and holiday season, it is open market, even if i can take 3 customers from them, me, my wife and my dad, i am game.
Ignore the id--t trying to convince you that $2B isn't a lot of money. The thing is, it isn't even just my assets. My parents will likely go elsewhere. Who knows how many others I'll talk into going somewhere else. There's also reputational damage, mental health impacts to current employees, and all right before plenty of natural attrition that will naturally occur due to RTO. A whole bunch of stupid decisions.
I'll be moving my money as well. It's not even about the layoff for me, but how they are treating employees. It's a direct attempt to take back control from employees coming off of the pandemic. An EC member directly told a small group that the layoffs have nothing to do with an impending recession or the cash crunch. It's only about demonstrating cost discipline to investors. They could have done voluntary layoffs and would have had plenty of takers. I'm fine with RTO in general, but the lack of empathy also shows how they are intentionally trying to change the tone. Now with fewer people, the remaining are expected to pick up the slack. If you don't, you'll likely be in the next round. It's calculated and in direct conflict with the values the company claims to uphold. Plenty will say that they are the same as most other companies out there and that's probably true, but it doesn't make it any better. Schwab will be just fine without my $1M, but I'd rather put my money in a hole in the ground before letting Schwab profit off it any longer than necessary.
$2B sounds like a lot.
Then you consider that total client assets were last reported to be over $8T (T meaning Trillion) then you realize $2B is not a lot. Not even a tenth of 1% of the $8T. $2B is only 0.025% of $8T.
Then consider that net new assets were $8.1B for the month of August alone and that was one the worst months. Schwab regularly saw NNA of $40B or more during the good times.
Moving your money out of Schwab is more of a personal way of breaking the connection permanently. If it makes sense do it. If not, money is money. Don't lose more money out of anger of getting laid off. Do it when it make sense. Schwab isn't going to die from laid off employees all moving their accounts away from the company.
you can transfer/convert the 401k to an IRA or a self directed IRA without any penalties. It's same forRoth 401k going to a regular Roth elsewhere if you need to. Just use a direct account transfer from CS to your new account holder institution to avoid any penalties or tax withholding fun.
I have already started the effort, Opened a Fidelity IRA and once terminated on January 6th, will move my money and my Wife's IRA outside Schwab and if all laid off employees do the same, it WILL hurt and it will hurt BAD, Love to see you all doing it.
It’s nothing compared to how much Schwab makes from managing other employer 401k’s. The company doesn’t depend only on employees for profitability. That would be an even more unsustainable business model.
You will have to roll it over or you gonna get charge fee
Once I find another position I think I will. I’ll never forget having to job search in a tough market during the Holiday Season no-less and dealing with the humiliations of rejections and recruiter ghosting just because EC could have their miserable bonuses.