Thread regarding Charles Schwab Corp. layoffs

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The VP of Trading Experiences told everyone in the DS All Hands today that he laid off 7 POs this week, mostly from TX. (he said that's about 42% of the team). He then asked if anyone "knows any rockstars" in Chicago, because ALL seven positions are going to be posted for hire in Chicago ASAP. Not sure if this same tactic is being used in other orgs, but that's how "leadership" in Digital chose to handle "layoffs" and "cost reduction".

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Post ID: @117W4z6E

7 replies (most recent on top)

I’m a bit surprised by this because I too work in DS and it is wildly out of line with how leadership has been messaging/sharing generally. Not questioning whether this leader in fact said this, but I wouldn’t assume they have the full picture - here’s why:

As is to be expected, theres lots of theories, speculation, and partial information floating around. However, one very notable, consistent pattern among directors, VPs, and SVPs across the firm is tied to their view of how this was handled. It’s not universal of course, but many are expressing frustration with 1) how little visibility they had into how their orgs will be impacted until very late and 2) the broader strategy behind the layoffs. Generally they don’t have more info on that than the ICs.

That said, the geo strategy is something the firm has done before. The last round of layoffs under the previous CEO was intended to cut costs partially by gutting the SF offices and relocating many of those roles to TX in particular (as we now know, they ultimately reversed course.)

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Post ID: @117W4z6E-2gkj

It makes no sense to rehire in Chicago. The Schwab Center is a few floors of rented space in a very expensive area, between the Sears Tower and the Chicago River. Chicago and Denver are almost at the top of the geographic pay scale, just below SF.

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Post ID: @117W4z6E-2suq

Why would they lay off just to re-hire unless they are planning to lay off older higher paid and hire younger lower paid on the sly – but why Chicago? That's a higher wage market and rent, right? Maybe that gets them off the hook for ageism complaints?

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Post ID: @117W4z6E-1xym

It's silly that there's a jackass who can round to 1 decimal place but not understand that the team had 17 people.

Anyway, that's super shady.

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Post ID: @117W4z6E-1ikl

How does 42% come from? 7/42% = 16.67. Does his team has 16.7 people? It has nothing to round to a integer. If this is the wisdom of Trading Experiences, more people should go.

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Post ID: @117W4z6E-1iaj

Yes. He even called it a geo-strategy. Fire in Austin, re-hire in Chicago for the same roles. They just used the opportunity of the layoffs to execute another strategy. Had nothing to do with expense reduction for DIS.

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Post ID: @117W4z6E-1npy

Moving jobs from TX to Chicago?

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Post ID: @117W4z6E-ief

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