Can anyone explain the difference between the location strategy waves (beginning in May?) and the layoffs that happen every other Tuesday such as the recent architects? Do these what I guess are resource reduction layoffs consider location? Will every group be required to reduce? Thanks.
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Non core = not in a core location
ADA = American Disability Act, if not in a core location and wfh now then doesn’t matter if ada reason or not, eventually you will have to move or lose role (severance) and bank decides first. If in core location and wfh and no ADA accommodations then RTO or get fired (no severance). Only ones able (for now) to wfh in near future are those with ADA accommodations. If unsure what they are then it is unlikely you qualify.
Also, non Core / ADA ?
India has core locations and WFH ?
Where did we get this info from ?
Imagine you are an exec and need to cut 15% budget and have been told to use I&P but still need all your people to do work. Imagine you have 1000 people and India costs 50% less. Imagine 200 of the 1000 work in non core business cities and 50 are wfh (non ADA). Now GO!!!
You lay off 300 and hire 300 in India thereby meeting the budget and headcount goals. You lay-off all 200 away from core cities but still need to layoff 100. Then you lay off 50 wfh. Still need 50 more. So out of the 750 in core you have to lay off 50 (in this case you have some choice so hopefully these are lower performing staff but we all know lower level mgr play favorites so you lose some top talent too.
End result you lose 300
What really happens tho is top performance staff leaves bank or slows down on working over 40 hours and India replacement staff while costing 50% ends up costing 60% and produce at 90% when fully trained thereby causing more tenured staff to leave and lower productivity yet. We call this a toilet bowl effect.
If they wanted efficiency, they'd fully embrace WFH and get rid of all these stupid buildings, which are a complete waste of time in the information age and are hideously expensive. All these initiatives are about getting rid of the legacy US employees and I'm convinced that Shart would be outsourcing even if India didn't save a dime. No one who cares about saving money spends $500M on office space in NYC, not to mention making NYC a hub at all. There's nothing efficient about paying a mailroom guy $100k/year. Same thing with SF. You can have employees in these places, but you can never claim it's about efficiency.
Moving to Agile was absolutely necessary to offshore work to India. Access the Cultural Navigator on Teamworks to understand why. If we didn’t force them to show their progress every two weeks then nothing would ever get done by them.
Save millions by dropping the entire Agile f-ck up.
Does anyone know the total spent on this white elephant sold as a messianic tech tool ?
Yes.
Do managers know who will be one the May Wave 1?
Wave 1 / May is Location Strategy.
All others are for Right Sizing.
Do lines get blurred? Of course. But it is as black and white as that. The company has decided it wants to consolidate non-branch employees at the same time as reducing overall head count. Basically the difference doesn’t matter.
Last year was mainly about efficiency. This year could still be efficiency and/or location. HR requires justification for reductions and usually it is reduced work or performance. But if your department has plenty of work and no low performers then a new reason is location. Reductions come from top (cut 10%) and then HR tries to come up with a reason for the cuts.
Yes. Yes we are inefficient. As a matter of fact, my area is more inefficient and chaotic then ever since Hudson Yards took over
There are, and have been, multiple efforts underway in recent years. There’s the push to align more resources to I&P, RTO, drastically reducing the remote worker footprint, reduce inefficiencies, and co-location (of course all commingled to reflect the larger efficiency initiatives). This is nothing new. CS has been publicly lamenting the inefficiencies in WF since at least 2020…01/20 - CS referred to WF as ‘Extraordinarily Inefficient’ during the earnings statement, then again in 10/23, CS referred to WF as ‘Not efficient, like period - end of story.’ - Expect the next 3 years to be rough as they move through the next phases of this effort.
The whole company has been going through staff reductions to meet CS’ efficiency goals. This past Tuesday’s layoffs were company-wide and did not just impact Technology. Knowing that location strategy enforcement was coming, some directors used location as a business case for some of the cuts they were required to make, getting two birds with one stone. Efficiency reductions are still ongoing while location strategy enforcement is ramping up but these are two different initiatives. You could become a victim of either.
Who knows what the actual rationale is. Some is location strategy-- some of those will be allowed to relocate or get laid off. Some remote workers were laid off this week, some also in core cities. And then there's the ongoing reduction in staff which aligns some with location strategy, but can happen in core cities anyway.
Bottom line, nobody is safe really and you're more likely to get laid off if you're remote/not core city.