Assenagon will save us
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I have it on very good authority that if the company’s performance in Q1 does not improve significantly, we may face another round of workforce reductions on July 1, regardless of how Q2 plays out. The potential scale of this remains uncertain, but based on what I’ve observed and analyzed, I estimate it could affect around 10% of our workforce. To be clear, that number is purely speculative, and I’ll explain my reasoning further below.
While I’m not part of the Tech organization, I have a close relationships with colleagues who directly report to Sathish. They’ve expressed multiple times that the Tech org was/is still bloated, which likely influenced where initial cuts were focused. In contrast, my organization is operating with limited resources, and I’ve had little success in advocating for additional headcount.
Given the concerns voiced on this forum, I want to pose a critical question: when employees voluntarily left the company in 2024, were their positions backfilled, or was their workload redistributed? The answer to this will provide insights into what roles and functions the company deems essential. For example, in my organization, a director who managed a team of eight left early last year. Rather than replacing them, I had another report absorb their responsibilities and team.
We are currently operating under a selective hiring freeze, with approvals granted only for roles that are deemed critical to the organization’s operations. If your team has seen new hires recently, that’s an encouraging sign.
Should there be another round of layoffs, I expect the impact to be distributed more evenly across the company. It’s important to note that even I, despite my tenure and position, would not feel immune in such a scenario. Our collective hope lies in delivering a stellar Q1, which I’m optimistic we can achieve.
It’s worth noting that Rhodes is under significant pressure to deliver results. Shareholder value has stagnated and, at times, underperformed during his tenure. He has been explicitly told that if performance does not improve by the end of 2025, his position will be at risk. If another layoff occurs, I believe it could be substantial, potentially aligning with my earlier estimate of 10%.
While I strongly advocate for working hard and delivering value, it’s important to acknowledge that many of us have limited direct influence on the company’s return on investment or shareholder performance. As a result, grinding tirelessly may not necessarily guarantee job security.
Our company’s performance is significantly tied to broader economic conditions, which can influence decisions far beyond individual effort. This is not to suggest that hard work doesn’t matter your contributions are invaluable but rather to emphasize that losing a position under these circumstances should not discourage you or diminish the effort you’ve put in.
Ally is still a great company. I like it here and can say that all corporations have greed and a big part of corporate greed is layoffs if it means putting more money into stakeholders. If you have an issue with that Banking is not where you want to be as someone who worked at another bank in NYC I can tell you Ally cares more.
June will be the next big round.
It will be heavily weighted with people that received poor performance reviews. But there will be some high performers. Our glorious new CEO is also targeting higher ups from the old regime, so expect to see some drastic changes.
"I expect one more round of layoffs this year. Auto delinquency will skyrocket. Ally hires some of the d-mbest decision makers."
They opened the buy box too far. The models give the numbers they want for regulators due o massaging by groups hired five years ago and the CFO, not the truth.
“Job security” is a myth.
I expect one more round of layoffs this year. Auto delinquency will skyrocket. Ally hires some of the d-mbest decision makers. If analyst are telling you that there is an issue with our books and to avoid auto for the next 36 months, and your answer is to ignore the advice and instead cut head count to “weather the storm” that is an issue. Ally has made wrong turn after wrong turn for about 3 years the ballon is about to pop (8 months or so) and we are the ones holding it. Even still 5% was not enough assuming no financial down turn, I estimated we would need to cut another 5-8% depending on what roles and salaries. PS they knew they were going to do this for awhile and your managers likely did not know.
Its a circle, its trending to do layoffs and it may last for 2 more years or this maybe the last year. Companies failed to innovate and over hired. They are readjusting and some companies will go under, all we have to do is survive and or find extra source of income.
I mean....
i think you only lost your FALSE sense of job security.
Never get complacent amigo!
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I feel like we've completely lost any sense of job security.