Since the FED has now lowered the interest rates today (.25), and this reduction of 600 employees was noted as necessary several months ago, do you think management will prepare for another round and this time, not let it leak? I have already heard rumors about a December possibility but that could just be another rumor. Thoughts?
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Not all staff has to go through official layoffs to be let go. Financial Consultants are often told that they are the single largest expense for the company (true or not, I have no clue). FCs also know that if the company decides to dig through every interaction with clients and accounts, the company can find something that they call a violation to terminate employment. Even if actions helped a client, the company can find what they call cause on any and every Financial Consultant at any time them decide to look for it.
I’m already laid off but I do know a lot of people there that are on edge especially now with the latest rate cut. It seems they are particularly targeting those over 50, those with ten years, and especially those hired on during the dot com boom who were often making much more than those hired later.
Looking for individuals who left, were fired or asked to resign AFTER the official layoffs were ‘done.’ If that applies to you, please reply here and if you’re comfortable post you job title. Thank you.
i would think there will be another one or more as the fed will lower rates again , getting close to 1% or less on the fed funds rate .
If anyone needs further proof that Schwab bet on rising interest rates, look at the bank strategy. How many of you know that Schwab has three bank charters?
I agree with this, if Schwab is having issues from assuming interest would rise, can you imagine Bank of America (ML), Chase, UBS, etc. We may be seeing a beginning to something. Hopefully not.
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.