Thread regarding Bank of New York Mellon Corp. layoffs

1,500 - 3,000

Santomassimo said $100-200m in charges on the Q3 call in October. They took a ~$140m hit on severance charges a year ago when 2,200 were let go. Back of the envelope math works out to about $64k per person or 6 months of severance + benefits. Per their earnings release, BK has a $5.9B annual run rate on staff cost at 48,700 employees at the end of 3Q19, works out to $121k per person annually. It's not 4-5k like some posted but a 3-6% cut is still pretty big considering how shorthanded this place is already.

For some clues on where the axe will fall, here is a quote from Gibbons on the Q3 call:

"...continue to see significant opportunity to automate a lot more things like reconciliations. When we look at the accounting platforms and the NAV calculations, there are still many manual processes in there that we are targeting, so I kind of look at – and there are still you know locations that we can – that we need to manage where there's an opportunity.

And as we look out to 2020 and some of the things that we can accelerate, I'll call out you know a couple of items. Number one, I think around reconciliations we can increase the scalability of the plant. We've actually been applying machine learning and creating much much more automated reconciliation process. It doesn't seem like a lot, but if you think about what we do as a company, it is a massive undertaking with a huge amount of headcount dedicated to it.

We’re also investing in a client inquiry system where we’ll digitize all of the clients’ inquiries into us. That doesn't sound like a lot either, but if you can imagine the millions of transactions that we process. If we can automate how we capture inquiries around it, we're also automating our instruction capture and as I mentioned earlier,"

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| 4407 views | | 18 replies (last ) | Reply
Post ID: @OP+12aj6GTh

18 replies (most recent on top)

so at this juncture, we're still figuring the 'big' layoffs will be, like this year, starting in mid-January?

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Post ID: @tvrq+12aj6GTh

In the statement in the original post he couldn't help it ... he used the word 'digitize'.

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Post ID: @pyab+12aj6GTh

In India this is poor place to be working. The employee treated very bad and wage is bad. Big problem to keep employee as it poor.

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Post ID: @puoi+12aj6GTh

I’ve seen the list. It’s huge. Best to take things home and be prepared.

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Post ID: @4fdp+12aj6GTh

If you want to be safe, do nothing but never say no to your manager, hardworking does not work, vision does not work BUT alliance works, politics works and yes, NO WORK works!!!
I don’t think they will lay-off to that extend like 5000! But surely they will target those one who are brave, works hard and challenges the status quo... Don’t challenge!!!

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Post ID: @4lba+12aj6GTh

Word to the wise. if you are a lead and have not been asked submit a list, it is because you are the list. Enjoy the next week at BNYM because for many of you it will be your last. It will be a bloodbath on Monday.

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Post ID: @4pmr+12aj6GTh

Proof and audit and nexen group in Westborough should be eliminated.

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Post ID: @1cpl+12aj6GTh

My bad they are looking to lay-off only those folks who are challenging the status quo to improve the system for effectiveness and productivity. I mean it’s obvious by seeing who are still working there.

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Post ID: @1evb+12aj6GTh

to zha. Seriously. When at beginning of the year our manager ask to come everybody with ideas about wickedness of our system and way how it can be improved I was one of few people who come with answer. And where I am now. Was separated with about 120K package.

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Post ID: @1aku+12aj6GTh

Its in bottom 3% of financial services orgs to work for. Enough said.

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Post ID: @1nwq+12aj6GTh

you know the layoffs are definitely coming, because all these client inquiry groups stop acting like the post office and popeye's and start acting professional and getting things done on time, but then revert back when things cool down

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Post ID: @1vmq+12aj6GTh

Do you mean similar to how they add social security in as “ my reward”. What a sh*thole.

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Post ID: @1izk+12aj6GTh

So the average BONY compensation package is $121k per person annually? I would just love to see the mode and median numbers for that to understand more. Or could they perhaps be using the bogus data in “My Reward” where your personal 401K contributions (not the bank’s match, your contributions) are listed as part of what the Bank is giving you? Obviously the Bank’s partial match of the contributions should be in there but not your contributions themselves.

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Post ID: @1kqu+12aj6GTh

Honestly, this lay-off stuff is just a big rumor, relax and focus on your work, they are looking only those folks who are challenging the status quo to improve the system for effectiveness and productivity. Cause BNY is known for lazy butt without needing to use brain and time. As you can see, there is no tool that measures the work that everyone does. Easy money, have fun while it last! Do not worry about layoffs ...

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Post ID: @zha+12aj6GTh

Haven't been at bny their idea of opportunity automating systems means that they will develop one function to automate and create to 2 manual functions to fix it. What really is going to happen is they will cut staff and just put the burden on the remaining employees to cover the work until they can actually automate or outsource.

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Post ID: @xdu+12aj6GTh

"significant opportunity ... " ... see, everything is wonderful! Merry xmas! My contacts in HR say the number is down to 6742.

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Post ID: @cbw+12aj6GTh

Thanks for this post. This is an intelligent one, with the intention to use facts to help predict the probable action that may be taken. This is the opposite of the earlier and occasional posts throwing out huge numbers and locations to be hit without any substantial explanations –posted strictly with the intent to increase employees concern and anxiety. Yet it is the environment that BNYM leadership has created that drives these posts too, so can't fault the individuals for releasing some of their own stress and frustration.

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Post ID: @rap+12aj6GTh

Thank you for this excellent post. This down to earth realistic perspective is appreciated so much.

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Post ID: @jfw+12aj6GTh

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