Why don’t they ask people to volunteer to leave with an agreed severance?
4 replies (most recent on top)
Because the employable people would leave.
No people, those are not the Primary reason. Anyone who knows business is aware of "adverse selection" bias... Those that are most employable elsewhere (tend to be most valuable and highest performers) will be more likely to take a severance offer, on average. One of the aims of a reduction is to eliminate roles in order of least valuable to most (by role, not be individual), so this approach defeats that purpose. One exception is for near retirement employees. Companies will consider voluntary RIF programs for them.
Because the list of volunteers would be too numerous
They did this once in the last 5 years for volunteer retirement (with severance) for people here X-number of years and over a certain age. Maybe 55. Only way to keep the list short.
Because that does not convey a plan. It’s random. It implies leadership doesn’t know what the unnecessary costs are. It has to conform to the lie of eliminating non revenue positions. Implying the only issue w profitability is that TD has a lot of people that don’t help improve revenue. And the only problem w leaderships great vision is solved by leadership identifying waste. This will work. NOT!!!!!!!!