I honestly don't see how letting 3% of the employees go can drastically save the expenses of a multi-billion dollar company, who also happens to be building campuses and buying segments of companies, especially if they're cutting across all pay grades. Something smells bad.
Not my post, took it from here: @1154zPKe-ued. Couldn’t agree more.
This isn’t a conspiracy people. No need for a congressional hearing here. The simple truth is they need cut costs. We’re expendable. Get over it.
Review other custodial financial firms. If Schwab can only make money on cash then they should get out of the money management business. So many other financial firms make globs of miney from fees and portfolio management. Schwab is obviously doing something wrong. So we pay for it!
it is not over yet , i look for oct - nov at least 600 each , with the fed lowering rates schwab will not make enough money when they buy united states bonds/notes/bills using their clients excess cash in their accounts . short term interest rates could very easy go to 0 -1/2 percent .
From an accounting perspective there is a huge difference between CapEx and OpEx.
A new campus falls under capex while people are opex. Take the reductions in travel, conferences company wide and it adds up.
TRUE 100%
Most of our revenue comes from net interest on client holdings and interest rates are expected to keep dipping
Most of our revenue comes from net interest on client holdings and interest rates are expected to keep dipping. (See Trump tweets about ZIRP) :(
That leaves less funding to work on some of our big projects.