Based on the CEO comments recently, it looks like they are planning to cut at least 40k jobs by the end of 2024. Based on what he recently said to book an extra 750 mill to a Billion in severance expense for 2024. Based on the recent history, WF spent 189 million in severance to cut 7k jobs in 3rd quarter, 2023. If you take the least amount of what he said(750 mill extra) that means that they are planning to cut at a minimum extra 28k jobs in 2024. They have averaged around 12k per year between 2020 and 2023. So if you add 12k and and extra 28k which comes out to 40k and a minimum. Most likely those 40k jobs will be onshore cuts. As of today, we have around 185k onshore. So, cutting 40k is between 20 to 25 percent reduction of onshore work force by 2024! It’s not a secret, he mentioned that multiple times. Unless he is misleading people, which is also possible.
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Do we know if 60 day non-working notice periods are included in this total?
It's WF. Presume that this project will go over budget and be delayed. We're probably really looking at $1.1-1.2B.
I don’t know if you can assume the averages hold though, because larger layoffs may also mean even some of the high-paid people start to get the axe, pushing the average severance per layoff up.
Citigroup provided numbers two weeks ago that translated to close to $85,000 in severance costs for each employee laid off. I would expect that WF is comparable.
Part of the cost they are estimating is surely hiring or contracting some people to manage all these displacements. Thus far 10-15k a year is about the max they've been capable of. They're gonna need some more bodies to double that number and do it without lawsuits.
It makes me sad what these POSs in NYC are doing to us.
The write off in 4th quarter of 2023 is for 2024 year. It does not include 4th quarter of 2023.
@mpe You forgot to subtract 4th quarter layoff expenses from the $750million.
Assuming 3Q layoffs = 4Q then you are looking at 21,000 folks.
Either way, this is a very awful number for full time employees in the US.
The gravvy train is on the loose. 😡
Based on the 3rd quarter layoffs as stated in the article(7k cut with $189 million spent on severances). If you use the 3rd quarter average to forecast the future cuts, it will be 28k extra cuts(using the minimum 750 million mentioned for extra severance) in 2024 then it was in 2023. So, if there was an average of 12k cuts in 2023, then forecasting 2024 will be 12k plus 28k which is 40k total cuts. I am not sure where you are getting 75k per head. Just making numbers up is not very helpful to others.
As already stated, figure 75k a head. Do the math. 750 mil to 1Bill isn't enough to cut 40k people.
40k cut stateside with 35k added in India and Philippines
Yes. Its going to be big numbers. Happy New Year LOL
They all left with golden parachutes.
Do you think they'll cut the geniuses who decided to hire 40k more employees than we needed?
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9k as of end of Sep. 12k total expected at end of Dec. 12k average per year.
How many were laid off in 2023?
I wonder , if the Fed has signaled that they will cut rates in 2024, what will Charlie do since he is gutting the mortgage business. Or will all the work fall on the folks left behind ?
That’s not enough-er head. Figure at least 75k a head. Will be much less than 28-40k people.
maybe they just eliminate 10 c-suite folks instead???
Earlier cuts were in some of the lowest paying business lines like mortgage, retail, etc.
Next wave will likely impact those places again, but more higher wage business lines.
Basically I don’t think a 1:1 cost to job number scale is appropriate for future job cuts vs job cuts to date.