Those in impacted areas in this wave will escape what must be coming next. 2k employees does not get us to the magical $500m in savings. My guess is call centers and people just doing integration will be taken out 30 days after the last TG. Remember the massive ramp up in call centers to deal with extra calls from integration and the TGs? Once the TGs are done I expect those areas will be cut significantly.
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I hope they hit the Green side HARD next q. Most TDA refugees are abhorrent.
There are no further rounds of lay offs. People here are talking nonsense. Even if there are, no one here knows and is just speculating.
They just went through a major re org. If they did another round of this they would have to do the same thing. Strategically that makes no sense.
Unless the market tanks focus will be on stabilization
Thank you. Didn't catch that it was $500 million twice!
@1szp+1pmKOdOe
There always was $500M slated for 2024 which was comprised of TDA drawdown (data center, software , other expenses) plus layoffs. This will happen after TG5.
What they announced in July is they were going to also do $500M in 2023 comprised of layoffs and real estate savings.
The latter is now done, but we still have the former to deal with next year.
Where was the $1 billion figure from? Prerry much everything I recall said $500 million.
And, in theory anyhow, the real estate closures are meant to be part of the cost reduction.
They already announced that in 2024 they will achieve another $500M in savings from winding down TDA plus more work force reductions. Green may be focus of those cuts, but I’d guess management can also use the opportunity to get rid of blue people they don’t want or do a reorg.
I have on good authority there will be more, just not this year. Q1 2024 or Q2 2024.
Anything of this size you can expected another public announcement like before, because of its “materiality” to the business.
I work advisor-facing on the phones, at one of the legacy Green locations closed. It's pretty clear they are going to take us out behind the shed early next year.
I wouldn’t say layoffs are out of the question in the future, but there are no definitive plans for any. A lot of factors play into it but they were pretty adamant things needed to stabilize for a while to rebuild whatever culture is left.
You have to also factor non-salary employee costs like health benefits, 401k matching, etc.
RIAbiz reporting an additional 5k next February and March. Is this confirmed?
The average fully burdened employee at Schwab is not making 250k. Probably closer to 150k. So likely still short about 200m. If you hit call centers, figure fully burdened is around 80k, so maybe another 2,500 gets us there.
There are no additional layoffs planned, my leader just confirmed in an org wide call. There may be smaller adjustments as part of the integration however.
There will be another round in Q1 2024.
You're correct I imagine it would be after integration, maybe end of year but more than likely 2024. The email they sent out in July said that they intended to take a series of actions into 2024 and that they are looking at a reduction in their current expense of more than 1 BILLION annually. So Monday was just the beginning. I would imagine after the New Year vc that's when the rto kicks in (Jan 1st), so maybe they will take into account the amount of people who may quit due to that alone.
They never said there would be a another wave.
If you figure 2,000 at an average of 250,000 that brings us to 500 million, some of the MDs pulling in more than that with bonus and benefits.