Estimated 500M reduction in expenses, assuming avg. salary is 200K.
Hence, 500M/200K=2500 employees is the golden number to be let go
26 replies (most recent on top)
It won't be that high. First you need to subtract he real estate savings from the $500M. The real estate savings themselves may be 200M.
@1flv+1nFgq4pz - in past layoffs our leader would call an impromptu meeting to announce it was completed. It was a mix of relief and survivor’s guilt, but at least we had a break - until the next round.
Can we expect this now? Wouldn’t bet what’s left of the bonus on it.
5% sounds conservative. At our All World meeting, we were told 10%+.
Do you think they will announce when all the layoffs are complete so those that may remain can breathe a bit
Employee count is 36,600 according to latest earnings report.
“I’m hoping they’ll try to figure who is planning to leave because of denied WFH requests”
That will not whittle it down much. Something like 60% of the firm applied.
He’s right. For budgeting purposes, the cost of an FTE is about $200k. Obviously individual salaries/bonus will vary, but I think $190k or around that number is what is used in the accounting sense.
From most recent earning - total salary and benefits cost for Q2 was $1.498B. Multiplied by 4 divided by 32K employees = $187K average for salary AND benefits. Avg employer cost for high deductible health insurance is $22.5K so average salary should be in the $165K range. Extending the math, 2,670 people or 8.3% of the workforce at risk. If they weight it towards middle mgmt it will be a smaller percent. I’m hoping they’ll try to figure who is planning to leave because of denied WFH requests b/c my guess is it will be greater than 5% and trying to hire talent after earning misses and announced layoffs will be highly challenging!!
https://www.zumper.com/rent-research/san-francisco-ca
$8,000 is ridiculously expensive. Even posting an extremely lucrative career in one of the most expensive cities on Earth $300k is still an incredibly large salary. I don't even know what to tell you man, it's your money but it sounds like you are being incredibly reckless to me.
https://www.builtinsf.com/salaries/dev-engineer/software-engineer/san-francisco
https://www.glassdoor.com/Salaries/san-francisco-software-engineer-salary-SRCH_IL.0,13_IM759_KO14,31.htm
https://www.indeed.com/career/software-engineer/salaries/San-Francisco--CA
@iyy+1nFgq4pz yeah it's high, I'm not gonna deny that, but that's the cost it gets talent to relocate.
https://www.levels.fyi/t/software-engineer/locations/san-francisco-bay-area
@dma+1nFgq4pz - My guy, your rent is double the average of Hong Kong. You are delusional in the extreme and need to get control over your finances. $300k/yr salary is close to the top 5% of earners in America, and in the top 1% of Earth. It is not average whatsoever
@tqv+1nFgq4pz every situation is unique. When Schwab wanted me to join (and move) I said only for a similar standard of living as I had in the medium sized city I was in. I don't think that was a ridiculous ask. For the same standard of living my rent is now $8000/mo. When you back out taxes, 401k contributions and rent alone there's not a ton left.
@ipt+1nFgq4pz - Okay, so you're just saying that from your personal experience you know a few people that are near $300k. That's cool. And totally unverifiable. For MOST of the company however, salaries are much clearer and freely available. Even using something like Indeed, Glassdoor, or Payscale it's pretty easy to see that the total average compensation of a Schwab employee is somewhere in the ballpark of $100k. MOST people that work at this company are not directors, sorry to say, and you are making far more than the average income earner. Same to the lady or gentleman that said making $300k isn't that much in a large city. It certainly is, you are just living beyond your means and don't understand what it means to make an average salary anymore.
@bhb+1nFgq4pz you def aren't at a high level as you don't know how much directors make.
It was the way you emphasized being in the daily details and had no clue how much directors do that indicated to me you are entry level.
@qsh+1nFgq4pz. how do you know what level I may be at. There is waste - which is why there are layoffs. Cuts need to be at all levels - especially the thick middle
@pzj+1nFgq4pz being in the daily details isn't going to guide the companies direction. It's a little ridiculous for the first few levels of employees to try and say get rid of their superiors. They don't even know/understand what that level of management is involved in. It may seem like a lot to some, but 300k really isn't that much anymore in a good sized city.
Should also look at all the highly paid PM - all they do is set up meetings and update spreadsheets - don't need a group of people doing that - they have no business expertise just fingers
Therein lies one problem - a director is paid that much to do what? Attend or setup BS meetings - they are no where in the daily details. Get rid of the middle managers and the directors!
@tff+1nFgq4pz obviously there's not going to be a public reference of directors salaries, but I'm close with quite a few directors and we talk. One is as low as $170k, but most are in the $250k to $290k range now.
@xcg+1nFgq4pz - Where are you getting YOUR numbers from? You said SALARY, you didn't say anything about total comp until now. Even factoring in all bonuses and related compensation I am baffled you consider $200k the average, and I would like to see where you are pulling these figures from.
"Even directors don't make north of $200,000 on average".
The cost savings only have to be total comp for this to make sense. That includes health insurance, 401k match, etc. Most of the directors I know are actually inching towards 300k, total comp easily over that, so not sure where you are getting your numbers.
@xbj+1nFgq4pz - Okay, so I'll repeat the question: You wanna run that one by me chief? Are you including executives in there? Even directors don't make north of $200,000 on average.
@htr+1nFgq4pz: I said average, not the median.
Read up: https://www.thebalancemoney.com/median-vs-average-what-the-difference-2682237
"Assuming average salary is 200k"
Uhhhh you wanna run that one by me chief?