Wells Fargo hired Charlie Scharf and he Is about to kick off his spans and layers reduction in Q3 2020. I have 6 direct reports, but I am hearing managers are supposed to have 7. From your experience (I know he cut spans when he was CEO at BNY), should I expect to be cut because I am short one person? How does this play out? How much flexibility is there? There are managers in my department with 3 or 4 direct reports and they think they will get an exception. From what I have read about Charlie, he doesn’t seem like he would make exceptions.
15 replies (most recent on top)
If you have 6 direct reports, you should be fine. Managers with 3 or 4 may get consolidated. If the odd one out PMP is a meet or beat expectations, he/she is worth keeping until they can get a team together to lead. I have not seen top performers let go. BNYM knows top talent that have contributed (via PMP) and is worth keeping.
With that said, I have seen layoffs based on high-cost locations, such as NYC and London. If you can be replaced with someone at a lower cost location (eg Pitt, Manchester, Poole), with the same qualifications and likely performance, it will likely happen. This is with all companies.
Regarding forced rankings, not everyone can be exceed, but if manager believes it to be the case, make your case (albeit a compelling case) to your upline. The PMP is designed to rate you compared to your peers.
I experienced just about every scenario above. And every word is true... forced rankings (disgusting), out and out fabricated reviews, juggling heads, etc.
I won't mention His Name – as that got me banned for months – but His Evil Ways know no bounds.
And WF is going to experience this first hand.
Charlie cares about his keeping his employer happy any that ain't the employees... If you haven't figured out by now that you are seen first as a liability and second as an asset in any corporation you're not thinking. Charlie will clean up house and within 5 years Wells Fargo will be as profitable as jpm...
Honestly, it wasn’t even his infamous layoff schedule. It’s the way he implemented the whole process leading to layoffs. Everyone at BNY is out to get everyone else for any little mistake that is made to save their own asses. That’s the culture. It’s really sad.
There is no exceptions with this a–hole. I suggest everyone at Wellsfargo to look elsewhere. In a matter of 1 year, this dic—ad changed a decent culture to the worst culture ever.
It just one of the many tools in his arsenal to manage headcount down. Coming soon, force ranking career solid performers as "does not meet expectations" and "people are too nice to each other." As that is being completed senior and middle managers go hat in hand to the emperor presenting their strategies for growth. All except the inner circle get a thumbs down and are fed to the lions.
The CFO for Wells Fargo announced on the Morgan Stanley Financial Conference call today that Wells Fargo plans on starting layoffs in Q3 2020, because the bank is in dire straights. They don’t care about employees. Charlie is going to hit Wells Fargo just like he did to BNY Mellon.
Not in 2020, no job cuts was promised.
I built up a team of 10, half of which were managed by one of my direct reports who was promoted and moved under me as an up and coming star. Then Charlie was hired, and it became "death by a thousand cuts." First displacement 4Q2018, 3 displacements in 1Q, 3 (including the direct report to manager) were moved to someone else in 2Q as part of "realignment"; I was let go in 3Q, then they reconstituted my remaining group under the up and coming manager after they axed the manager they were moved to (and frankly didn't know enough to manage them). I could allege age discrimination in the way they replaced me with someone much younger, but they would say it is a financial decision. Either way, they placed chess with people's lives and career, have the same work with fewer people and lost institutional knowledge, demoralized everyone, and still have no idea of their end game.
Get ready for the disfunction junction to go operational - all hell is going to break loose there. My condolences! Everything written above by the other posters is spot on!
Good 'ol Chairman Chuckie continues his disfunction. You kids at Wells are in for a serious treat!
Example of a criminal, albeit white collar, who walks around free and gets rewarded for it. He’s cost BNYM millions, from his own salary accomplishing nothing but a moral and physical disaster, to the spend on building open collaborative space to force all staff to be in the office sitting close together and easily spread any infectious diseases, which now all need to be reconsidered and/or rebuilt. The guy has no shame to admit to himself he is a useless leader and retire early/take the money and hide instead of lying to yet another company and stealing their millions. How dumb of executives continuing to hire and enable him. One of the examples of issues the country currently faces.
At BNY, the rule was minimum 10 direct reports, any way they could do it, and often it was just crazy. Goodbye functional teams lead by an expert. I had 6, they gave those to someone else who needed more to make 10 (on paper) then gave me a team of 14 after their manager was laid off. I kept managing my original 6, plus my new 14. That didn’t last too long as they were cancelling contracts and still laying off. It wasn’t pretty.
Note in my case, the other manager was laid off to reduce “layers”, since she had been a mid-level manager. And I kept my level but lost my “manager” title, another way to make it seem like BNY had fewer “managers”.
Meanwhile, work tried to go on as usual. Disorganization and loss of expertise were a huge problem. We suspected a grander plan that might make sense but we just weren’t “there” yet. Eventually it just came down to cost reduction. It was such a mess that people who could leave, did.
Rule of 7, if you manage one and one reports to you then that is where the cuts will
Occur. Charlie ultimately flattened the structure so no one person was any more than 7 steps from CEO.
They will move staff under you and put them under your direct report (this will be on paper), but you will still be responsible for them. This caused a lot of confusion and disconnect At least that was my experience. Good luck