March preliminary numbers are coming out soon. Not going to be a surprise that number is negative and then after that they’re going to announce some more layoffs before the earnings call. Need to make more headway if the market is going to react. Anyone heard anything?
21 replies (most recent on top)
@3qm hahaha! Fa----s exist
As was mentioned in another thread...These layoffs have nothing to do with stock price or TRP performance. They are directly related to the fact that TRP is outsourcing all of it's IT function as well as several large business unit functions to Accenture. These layoffs will continue over the next 12 months until all the associates in the affected BU's have been let go and replaced by Accenture workforce. End of story.
@3kb I can feel it too. They’ve got to dial down Distribution this time.
@OP one more round coming up. Hold on everyone.
@xr challenging your fear-mongering isn’t shutting down the conversation. And if you think I’m bitter, just take a look in the mirror
Fellas, fellas, fellas. Please. There is more to T. Rowe Price than just tech teams.
@wq You should direct your complaints to the OP...I am just a replier. You are certainly a bitter S-B. You do realize people outside of Tech Ops have been laid off? Stay in your bubble and let the adults who can discuss things civilly and respectfully continue to have our conversations. You do realize you do not have to open, read, and respond to threads here, right? Typical troll tries to shut everyone else down.
I personally appreciate the heads up I have gotten here and from people at the firm. I knew RR/CL were big outsourcers in 2024. I have been educating myself ever since. I was given the news 3/26 that our team is being offshored. I already have an interview on Monday. Adults, like me, like to be able to prepare for things. It is never smart to assume "everything will be okaaaaay" and be blindsided. If I had to say anything good about this whole thing is none of this was a surprise. Unlike you, I choose to be positive and realistic. Thankfully I soon won't have to deal with bitter crumbums like you. Cheers!
@wb “your team” = Tech OPs. That news is not new. Stop trying to spin it into something greater than it is.
@tt IGAF if you believe. Our team after had a meeting just us after we found out. They are not done. I appreciate the honesty frankly. Enjoy your rose colored world with Santa Claus and the Easter Bunny.
@v2 you’ve been on here for weeks spinning the same story. Everyone knows Tech Ops is being outsourced. Your “source” is nothing beyond that.
Stop trying to act like the rest of Tech or other groups in the the firm face the same problems.
@tt Someone in the know that I am close with did say there would be more layoffs. It’s coming buddy.
@aw what a lie … they wouldn’t tell associates if more tech layoffs were coming
@pa "T. Rowe Price (TROW) is scheduled to release its Q1 2026 earnings on April 30, 2026, with a conference call scheduled for 8:00 AM ET on that day."
@OP when is earnings call?
@bv that’s management consultant speak, at best. Or just lack of business sense. Let’s try this again
AUM*Avg expense ratio = Revenue
Revenue-Expenses = net earnings
AUM growth leads to stock price growth.
Outflows or expense increase leads to reduced stock price.
Management is focused on expense reduction since it’s easier than getting inflows.
Simple
@bv um the things you mention have an impact, sure. At the end of the the day though it is simple: more net outflows means less profit overall (all else equal). As someone mentioned, if markets are flash this can negate or hide a horrid situation with net outflows somewhat. At an extreme, if net outflows continue, at some point the company will eventually become unprofitable.
TRP makes money from fees on AUM. Simple.
@aw There is absoutely no connection between layoffs and flows, as suggested here. The whole active/leagcy MF segment is in an elevated state of chnage. The outflows will continue, regardless of layoffs, until the new equilibrium is reached. The spikes generally occur as a consequence of market events and portfolio construction shifts, portfolio manager changes, poor performance or investors switching to different vehicle types. It is widely known that this will continue to be a headwind for some time, and likley into the tenure of the next CEO...
@OP Layoffs have been going on in pockets since last July. They do them in small numbers to avoid the press, WARN notices and having to send a mass email out to the company. If you get laid off consider yourself lucky. Take the payout and move on…you will. Like a bad breakup life goes on for the better. Trust me there is a much better life after T. Rowe Price.
@aw the firm has been laying off since 2022. The firm also has had no organic growth in 15 years- assets have grown only with market changes.
You cannot grow by cutting. That is why stock is down.
Use 2025 as a guide. Last year I remember 2 tech groups being laid off - given 3 or 4 months to train, then they go bye bye, and after a couple of months a new group was told they'd be gone in 3 or 4 months, and so on. And it seems that a month or so afterwards, non-tech folks got their walking papers (immediate, no training situation). So using that as a guide, I predict the last Thursday in April will be the next Doomsday. I hope I am wrong - good luck to all.
Just to be clear, it was told to tech people that layoffs last weeks there were not done. This fall, others will be announced. Offshore will replace tech, and AI and structural changes will affect other groups. Who knows? Accenture does Accounting, Finance, and other business (non-tech) functions. It would not shock me if once tech is cleared out, they look at other functions in the firm. The rationale behind offshoring stems from the question "What does our business do? We are not an IT firm. We are also not an Accounting firm"...you get the picture. I 100% believe at some point the only T Rowe facility will be Harbor East, but that could take a few years.
My question is why after several rounds of cuts, why do outflows still persist & randomly spike and why has the stock price not been able to rise above $100 for an appreciable amount of time? Surely all of these cuts would make stockholders lick their chops?
Very likely, but also not sure you're going to get definite answers at this point. It's clear the management is doing everything they can to keep leaks from getting out with how they're doing things and doesn't trust anyone below the top circles with information. The vicious "us vs them" mentality between not only the lower people and management, but different groups within the firm is one of the biggest signals this place is destined for the garbage bin since it's truly dysfunctional to the point it's beyond saving.