Thread regarding Charles Schwab Corp. layoffs

Another round of layoffs in Q1 or Q2?

Word I heard today is that the feeling is that Schwab will indeed have another round of layoffs in Q1 or Q2 unless the rates magically rise. Given the climate, that seems impossible. Schwab hitched their wagon to the idea that rates will normalize. How they didn't see the looming debt crisis (public and private) and the bond bubble is beyond me. We've been living off of near zero interest rates for almost a decade during this "recovery".
things about to get ugly.

Found this post from @117vHXUX-rgx on another thread, where it was posted as a reply. I was hoping to get some thoughts on these claims?
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Post ID: @OP+117QLPw6

15 replies (most recent on top)

Schwab missing the looming debt crisis (public and private) and the bond bubble is a case study of a failure in strategic risk management. 60% of the firm’s profit can be erased on a single Federal Reserve meeting and Murtagh and gang missed it? We've been living off of near zero interest rates for almost a decade even negative rates in some countries.

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Post ID: @Cdth+117QLPw6

Q1 would be an excellent time for another layoff and I would be expecting another 2 rate cuts to help cement this. Do you think Schwab will ever ask for volunteers in the next round? I would be at the front of the line.

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Post ID: @9muu+117QLPw6

Thought it was interesting that we got an email from WB after the dust had settled emphasizing that there would be no more layoffs and that the company had prepared for the most recent fed rate cut. It seems that maybe they are concerned that people are preparing for the possibility of another cut.

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Post ID: @2vec+117QLPw6

If it is due to the interest rates... Then it's like Schwab got a big boner when rates were high and lost all self control. Then when they go down Schwab got all nervous and over corrected. Root of the problem is bad planning.

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Post ID: @1pol+117QLPw6

"Canned" aka "dismissed", "fired" however you want to put it. Big article in the Business Insider. Keep up.

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Post ID: @1xdj+117QLPw6

Sorrenson with his insights & Ideas are still here. What are do you mean he got canned? He has more predictions for us. The prediction is interest rates will not continue to drop through 2020, at least Q3. And that's when interest rates will rise.

These jokers are worse than FC. They pretend to know a lot, wave a magic wand, with a crystal ball, when in fact they're just rolling a die. Heads we're up, tails we're down. Some experts.

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Post ID: @1zdv+117QLPw6

This was 100% due to low stock price. Not the BS they’re trying to feed us

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Post ID: @1dgz+117QLPw6

Yes, I do. And it got Sorenson canned.

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Post ID: @1coi+117QLPw6

And you believe Walt? They are the same people that anticipated interest rate rises through 2019 at the beginning of the year. Where did that get us?

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Post ID: @1zie+117QLPw6

Walt has already said that the layoffs were in anticipation of several rate cuts into 2020. They don't anticipate any more layoffs this year.

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Post ID: @bkn+117QLPw6

I was eligible for sabbatical in a few weeks. I didn't even get to say goodbye to my team. :(

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Post ID: @lfy+117QLPw6

I was laid off and I’m glad I got my sabbatical in

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Post ID: @juy+117QLPw6

I was offered a job in July. My future manager told me to hold off on giving my two week's notice because of what was about to take place and I was told I'd have an update on whether or not the job is still around by early 2020. I'm assuming this is when everything will be final.

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Post ID: @isg+117QLPw6

“In 2014, Schwab’s net interest revenue was just 38% of its total revenues but by 2018 it was nearly 60%. The higher interest rates in 2018 contributed to Schwab’s success and now falling rates will be painful for the discount broker and custodian”

Just do the math and draw your own conclusions in light of 25 bps cut yesterday.

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Post ID: @dna+117QLPw6

I saw this on the other thread too. I have not heard this as a rumor, but it makes a lot of sense. :( Stressfull times! Maybe time to look for a new job, goal being to start mid march after bonus payouts. Hope everyone who got layed off had their sabbatical scheduled!

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Post ID: @kea+117QLPw6

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