Everyone seems nervous and timid in the office today. I heard whispers more layoffs are coming to tech.
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Ally makes money by originating loans. Technology is an expense not a revenue generator
No we are a bank that called itself a tech company to be cool and try and get wall street excited. Our new CEO makes me embarrassed to tell anyone I worked for Ally.
Yea tech is bloated... but aren't we a tech company?
The BAC people JB hired are the ones holding this company together. They are political (who isn’t) but competent. The problem is now Michael wants to bring in his own cast of characters to do his bidding which always happens with a new CEO.
Tech org was bloated so I’m not surprised it was hit hard. Too many pet projects wasting money and dropping the ball on core technology platforms. Too many people tracking and not enough building. Su-ks that employees are paying the price for lack of strategic vision and countless shuffling of leaders.
GM sold GMAC in 2006 for $14B because they were broke. The $14B bought GM a few years until they filed bankruptcy in 2009. GMAC changed their name to Ally in 2010. There have been a few missteps since then but layoffs were few and far between until JB took over. He was brought in from BOA along with some of his underlings. There have been three large layoffs in 2017, 2023 and 2025 that I am aware of. Now Ally has brought in MR who has a questionable past with TD Bank and a brief stint at Discover Card. Now, he’s brought in his own underlings. Layoffs and moving jobs out of the US is what he is known for. If you read an email from him while at TD announcing layoffs, it is strikingly similar to the announcement yesterday. Is he the right fit at Ally, who knows, time will tell but past actions dictate future actions. From all indications, Ally has always stressed the Do it Right mantra,,,,Do it right for who Ally? Your stock holders? What about the employees that built this company in lieu of our Executive team’s recent decisions like the Carvana poker game? When that goes south,,,Ally is in TROUBLE. Good luck to all the remaining employees. God bless those employees effected by the recent layoffs.
You know what. I have bit my tongue for months I am done. The reason Ally separated from GM was the financial collapse. GM couldn't shield us and we were forced to operate independent of GM. Part of the way GM had fallen so hard was the debt dependency and subprime auto loans. This was something many at the financing arm had warned against.
How are we falling victim to the same thing we once warned against. Has it really been long enough for our executive team to forget our origins. Ally thrived on being nimble and niche. Every move since 2019 has been either wrong or too late. We hired so much during covid and then had the great resignation and hired even more (because it looked bad to have a brand new office be so empty) yes that was said by a senior director. Only to flip a switch and do a hiring freeze, this company has 0 management skills 0 financial literacy but so much talent. It is sad to see.
The results we have gotten were all from the initial work of the team from 2013 - 2017 which put us in a position to scale. In massive part a testament to how good Halmy was, and personally even thought him and I did not see eye to eye he was the best CFO we have had. We need a no nonsense guy like him back in charge. No more risky plays. No more corporate waste.
They loaded up on cronyism via BOA hires five years ago. They got the worst of BOA because JB was never a good choice. Now the chickens are coming home to roost.
If you are hoping for good news you won’t find it here. Ally is in big time trouble.
We are in auto loans and the auto market is collapsing.
We are in tech when tech is going to AI.
We are in banking when banks are seen as primitive.
My 5 year outlook is so bad. If you are in a position to move companies I think there has never been a better time. If you were laid off I’m deeply sorry but you might be better off for it.
If you are on the build team I think you are in a safer spot on tech, but that is just my theory with 0 evidence haha
So, Ally Financial recently decided to renew its partnership with Carvana, even after a major report from Hindenburg Research accused Carvana of financial mismanagement and questionable accounting. While it might seem like a smart move on paper, there are serious risks here.
Ally is heavily invested in Carvana through loans, so keeping the relationship going may ensure it continues to get paid back. If Carvana crumbles, it could affect Ally's portfolio, which depends on the company’s loan receivables. If Carvana’s financial issues turn into a full-blown collapse or scandal, Ally will be seen as complicit. This could hurt its public image and shake investor confidence. If Carvana defaults or goes under, Ally could face significant losses. The deeper Carvana’s issues run, the higher the chance Ally might be holding bad loans. If Carvana is proven to be committing fraud Ally's good name will be gone forever and the 'do it right' motto will be right out the window. Not to mention the billions in losses. It was a calculated risk and getting things off the books was a must for Ally.
In short, Ally is putting itself in a very tricky position by keeping ties with Carvana. It's a risky play, and the stakes couldn't be higher for both companies. I am very bearish on Ally and Carvana atp. To all my colleagues I recommend brushing off the resume. 100% limited bonuses this year.. if the report is proven false it wont be until after bonus are issues anyways. Best of luck to you all!
Awee were just a poor widdle company sowwy we haf to let you go pweese dont be mad at us
Then the CEO goes and signs with Carvana for a loan sale deal. Absolute masterclass by Michael Rhodes.
Hey lets all get back to work and wait for someone higher up to tells us what is going on before we start fear mongering okay.
Yea. Ally is in serious trouble rn and has been trying to clear up its books. Expect more to come in q2/q3
Glad you tried to put a positive spin on that at the end. My manager told me AI is coming faster than we thought and to really be ready for whatever happens literally the day before.
I have access to certain sensitive information, which I cannot fully disclose to maintain confidentiality. However, I can assure you that there are no plans for layoffs through at least the end of Q1. That said, I would advise exercising caution if you are accessing this information on a work device, as it has been discussed in prior conversations.
I am deeply concerned by the recent layoffs, as they appear to be driven by factors other than individual merit. A number of highly capable individuals have been affected, and for those who were with us last year, you may recall we already made significant cuts, despite the talent within the team. As an internet bank navigating credit and economic challenges, we're not in the same position as SVB, so there's no immediate cause for alarm. However, it’s clear that we are currently overstaffed in specific technical areas, particularly within some backend and UX teams.
It is incredibly frustrating that senior leadership has not provided clearer guidance on which teams may face additional reductions. The lack of transparency feels deliberate, and I firmly believe that proactive communication in this regard would be more responsible, allowing teams to prepare appropriately.
Having been with ALLY for an extensive period, I know we can do better.
As for those expecting to meet their 2024 bonus targets, it seems increasingly unlikely that this will come to fruition. I’ve heard that some who merely meet expectations may receive no bonus at all. Historically, ALLY has maintained a philosophy that compensation should not be the primary driver, which has led to institutions like Bank of America and Wells Fargo offering higher pay and attracting much of our early talent. Over the years, I’ve always advised my teams that if financial compensation is your primary motivator, there are better opportunities elsewhere. However, if company culture is what matters most to you, ALLY could be a strong fit. That being said, recent decisions from leadership are starting to cast doubt on that sentiment, and I fear they may lead to negative outcomes.
That said, having been here for so long, I know this was something we tried to avoid. While I have deep sympathy for those impacted, I remain very grateful to have a job. Despite my critiques, I still believe in this company and its potential.