CIB Markets Future/Prospects - with cost cutting backdrop - post regarding Wells Fargo & Co. layoffs

CIB Markets Future/Prospects - with cost cutting backdrop

With Wells/Charlie announcing $1BN of severance in Q4 and signalling to the investors that "efficiency" will be achieved with more costs cuts/layoffs, how does this backdrop impact the CIB Business ?

I recently moved to this Business from another team and see that growth opportunities are difficult mainly due to limited balance sheet (asset cap), limited market share (Markets Sales and Trading is a game of scale of consolidation these days - especially with the higher Basel 3 capital rules) and limited budgets available to spend on technology/talent which is critical for this Business.

I know Charlie wants to grow this Business but i do not see how growth will happen with the above points/limitations. This Business also suffers from the traditional Wells Fargo issues such as multiple teams doing similar work, legacy staff (who have been here for more than 20 years) just trying to ride through with no intention to change and morale issues.

Does anyone from this Business has any recent data/news on layoffs and if this Business has serious plans to grow? Management touts about how they have done well (which they have in their credit) but the on-going momentum seems doubtful.

Any input would be appreciated.

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11 replies (most recent on top)

OP asked about CIB Markets. Are you FO or COO or some other function? I’m presuming you ultimately report into Dan/Mike.

S&T FO is going to respond very differently to cuts than is IB.

@xtr+1q1ngCnR Weiss is great, but he won’t be the one with the reins when/if the asset cap is lifted and there is at least a potential opportunity to grow strategically.

CIB markets has never made economic sense at Wells. Wells does not have the capability or the attitude. Also Weiss does not have the vision or the dynamism required to build such a business either. Charlie is just paying for the billboard because it makes him look cool.

the Commercial Bank cuts in 24 will be down 1300. God Bless

I am in CIB. Word is that next year we are losing 20% of the workforce from layoffs. So roughly 1400 people. We will do better than other BGs, but still a lot.

@apw

Tell me you don't know how the stock market works without telling me you don't know how the stock msrket works.

When a company has layoffs -- especially announcing massive layoffs to increase efficiency -- stock price rises. Investors LOVe to hear about people losing jobs in order for company to become more profitable.
It's the capitalist way!

@vkm+1q1ngCnR If all of this is true then why is the stock doing so well?

2024 layoff provisioning is more than $1 billion. Charlie’s quote was that it was going to be .75 to 1 billion more than what was previously planned.

“We’re looking at something like $750 million to a little less than a billion dollars of severance in the fourth quarter that we weren’t anticipating,”— Scharf.

CIB is the most ruthless division when it comes to layoffs

You will work long hours under extreme pressure and as soon as they decide you are not performing you are gone. And that’s when CIB is making record profit…

Your doubt and concern are completely valid. Wells is so far behind its competitors in any markets business. Ignore the self-promoting soundbites you hear from these one-off deals during all-staff calls or town halls. We simply don’t have the balance sheet or the leadership to grow this business. Markets is also a global business. Wells doesn’t have any meaningful relationships outside of America. Wells have been trying to build something in Europe by hiring 2nd/3rd rate bankers, good look on that. They haven’t accomplished anything in the last 2-3 years. We also gutted the Asian business, nothing to see there either.

What has Charlie done exactly? Jack sh-t. He’s the uh uh uhhh guy. That’s about it.

Thread regarding Wells Fargo & Co. layoffs

CIB Markets Future/Prospects - with cost cutting backdrop

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