Thread regarding Charles Schwab Corp. layoffs

Any news?

I personally have not heard of a single notification at any of our geo-locations, from Austin to Denver to Raleigh to Richfield to SF. Not sure what the last poster is referring to, maybe those in the field branches or FCs maybe?

I can confirm layoffs started today. All pay grades and all roles.

I was expecting this to be one big layoff tomorrow and be done with this morbidity. Guess not. Hearing now layoffs could trickle through Wednesday or Thursday.

Is it mostly MDs that will bear the brunt of the layoffs?

There’s over 1270 MDs in the White Pages! Never even heard of any of them!

There are at least 5 in Raleigh, probably closer to 20 is my guess though.

We are 2-3 cuts away from 0 interest rate, more cuts are expected.

I'm so glad I exercised all my options, sold my RSU, and accumulated ESPP at $53 a share. Was debating if I should hold as it was continuing to rise Unfortunately still have been accumulating ESPPs, oh well.

It's going to be sh– show the next few days. That's for sure.

Good luck

I’d rather them just rip off the bandaid and get it over with. If that means as soon as I walk in on Monday, fine. There’s a bar around the corner from my house that’s open at that time lol.

Statistically speaking, it has never happened on a Monday at Schwab.

I am totally expecting most cuts on Monday. Why wait when everyone knows it's coming.

Any word on Richfield?

They always take input from the higher manager(s). For VPs and MDs getting cut, this would definitely have input from their SVP. Remember, it's business nor personal.

I don't know that HR makes any layoff decisions–just carries them out. Sometimes the VP's are told: "You need to get rid of this many people under you." Sometimes the Managing Director is told. Based on only 3% of layoffs this time around, my gut feeling is that they are targeting specific departments and locations based on redundant hiring and too many hires. I think if another layoff is at 10%, almost every department at some level will be given a number to layoff.

The numbers collected so far seems plausible. The point made on eliminating MDs that very few direct report also makes sense. I know MDs that have like 3 direct reports, who are not Sr. Managers, and who don't have any direct reports. Consolidating is always the first things done.

Any context on how decisions are being made? For instance, if a VP or MD is being cut, who is making that call? Is it HR, or someone closer to the actual business?

@112UokNX-1wds

Denver and Lone Tree are the same place.

If the recent posts are accurate:

154 Denver/Lone Tree
189 San Francisco
80 Austin
177 Rest of Company ( Westlake/Dallas, 2 Locations in Phoenix, and Several Smaller Offices)
========
600 Total Layoffs

193 in San Francisco? That seems way too many. So far people have confirmed 150 for Denver, 80 for Austin and 154 in Lone Tree as well. And no mention of Phoenix? Phoenix is their largest hub. These numbers don't add up.

FCs will be directly impacted once they raise the client threshold for those eligible for an FC in the coming months. This will result in smaller practice sizes and a need for fewer FCs.

Managing Directors and VPs across the board will also be directly impacted, especially if you only have few directs, work in a non-client facing role or you’re underperforming.

193 confirmed for SF. Looks like they hired way too much for Digital, and can save a bunch of money by eliminating developers in that area, and recoup on renting the big floor in 215 Fremont from Fitbit. Thank you Pottruck for making that wise move to sell 215 back in the day too.

Correct on the MDs. VPs have made open comments about needed more direct reports. Company wide you will need at least 3 directs for an office. I wonder if that aligns with layoffs as well.

I heard there will be some consolidation at the Managing Director level if they have no or very few direct reports. Good luck to everyone this coming week.

I have no ideas how much FCs will or won’t be impacted. But when you hear the term VP being floated it’s in regards to real VPs i.e principals. Not the marketing shtick of “VP” on an FCs business card. As the opening post suggest this is a likely a major reorg which would make that the logical step.

I hope that if they have to do another cut, they will ask for volunteers so I can take them up on that.

We need more FCs like we need more lawyers. Seriously.

FCs will be heavily impacted. This is inline with the rumors that a number of VPs will go. I think the VPs they are referring to are the FCs with the title of "Vice President". So that clients feel important that a VP actually talks to them. The real VPs wouldn't have the time of day for these clients. Client through your eyes. Or something like that.

has anyone heard how many employees from the branches get laid off?

who gets laid off - fc, fcp, afc, crs?

I hadn't heard about the round 1. So a round 2 due to another rate cut could be 5-10%. That's huge.

I got 154 in line tree, most like rps and sps merging together in some way

Any word on Lone Tree?

Anything on RPS?

I'm sure there is, probably % based on total needed.

Anything in Phoenix?