I've been hearing some rumors about more layoff in April. Does anybody know more about this?
6 replies (most recent on top)
Could the "grim" news be either a receivership or a sale ? If we merge, the other company would only inherit liabilities and cash to offset the continued losses for several more years. The only way to save Mutual is to merge into another recordkeeper. 250-300 jobs would be lost. I can elimination of the GAR role, field EVPs, Capital Management, Call Center, Claims. Most of the group plans being sold are advisor sold so we'd merge with an advisor centric recordkeeper.
Is this the "grim" news which you envisioned happening right around Labor Day ?
I heard there’s very very grim news coming for us in the coming months. These aren’t just rumors, but actual planning inside the executive committee. Everyone’s best move would be to start preparing- don’t get caught off guard like the unfortunate groups that got laid off in 2024. With no pension, and no reward for longevity, why would anyone stay? I’m not.
To save money, cut the highest paid employees first. If you cut 10-20 VPs, SVPs, and EVPs first, right then and there it would save $5M. Plus, the company saves $30K each of what it pays for its share of healthcare. That's another $600K. No one would notice they are going because they are not productive, are not client facing, don't add value, block decisions are don't share info. Then, by the money you save, give the 20% of employees who are wrongly categorized as salary instead of hourly and work 55 hours per week, $5-$8K annual bump in pay.
Great way to show someone cares for the hardworking employees.
Is the CHRO, her assistant, and CEO seeing this message ?
The DOL, NLRB and SEC are under new management, DOGE, and won't really be concerned with anything going on at an unheard of retirement fund.
You've got about 30 people leaving since Incentive Comp was paid. I'd do the following:
- Eliminate 5 Underperforming GARS/PARS/Admin Assistants
- Can of 3-4 Field VPs and EVPs
- Downsize 5 CRM roles
- Cut 7-10 IT
- Close down CX entirely and have surveys done by Medallia and hire an outside Web designer
- Fire the Director of Comp and head of EVP Administrative Operations
- Furlough 10 IT people
- Reduce Board of Directors and their pay
- Automate claims and terminate 10 people there
- Reductions in force for RDI call center with 5-8 positions gone or not renewed.
All told, you could safely cut 50 people and no one would notice. 30 retirements + 50 = 80 by June 30 but as the previous poster suggested do this the humane way with early buyout to avoid lawsuits and protracted legal settlements. All it takes is one disgruntled pi---d off employee to go to the DOL, NLRB, SEC, NYDFS, and the NY Times and Post to make things very interesting.
The company should offer early retirement or early buyouts. It's more humane and professional and it doesn't leave as many people with a poor taste. Most smart companies like TIAA did a few year back did this and it went over well. No reason why Mutual can't do this with a $750M cash surplus and the market going through the roof like it did today. Here is how I would structure the early buy out to non key employees:
1 year worked = $10,000 severance
1 year worked = 1 monthly of company paid healthcare paid at 50%.
You'd get a good solid 50-75 employees to take this deal and it would save the company $10M beginning at the 18th month mark.