Yes, we have layoffs every other Tuesday, but usually it's nothing major. Yesterday seems to have been much larger than usual, and I don't think there was any warning it would happen like that. What happened?
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The process of laying off large numbers of people takes months. Have to prep other people for taking over the work and go through the process to make sure everything is compliant. The cap just got lifted. We won't know the impact for at least 6 months. Everything happening now was planned months ago.
Layoff rate to date has been limited by 2 primary factors:
- Capacity of HR to process the layoffs.
- Certain career areas being "ring-fenced" and protected b/c they're directly supporting efforts to get out of Regulatory jail.
Now that the AC is lifted, I don't think layoffs will accelerate, but will be targeted to 2 main groups: Non-Hub locations and Risk. The actual headcount change will be somewhat offset by a shift in hiring focus to revenue-generating teams in Commercial and CIB, which have the lowest efficiency ratios and are the best source of rapid, future increased profits; this will also have the effects of improving the Company's efficiency ratio by increasing the denominator in that equation AND making Schart & Co more money through improved Stock prices.
Also it's hilarious that the crazy guy couldn't even get the hallucinating machine AI to see what he did in the earnings call. This place is such a freak show.
@g2 Sure, Jan 😂
@g0 Fool, I am a different person. Just keep talking yourself in circles.
@bz No, "their" (lol ok I guess you're pretending to be a different person now) message is absolutely false, since they can't back up what they claimed: that layoffs are accelerating as a direct result of the asset cap's removal. That's how reality works, friend. The "evidence" they presented, didn't even say what they thought it did. Their reasoning is severely faulty, and given they seem to be working backwards from a typical paranoid blowhard position found on here, it would appear that something is cognitively wrong with them.
But keep moving those goalposts back: the important thing is that misery loves company and I wouldn't want to distract you- er, them- from such a noble pursuit.
A single policy change could make us the most efficient big bank in the nation.
No one can convince me that the execs actually care about expense ratios. It's an excuse, like everything else.
About 500 downsized.
Much more to come in August. Probably Tues 19th following planning and before things get locked down end of Sept. this place is nuts.
Here is meta.ai summary: Analysis of Efficiency Program in Wells Fargo's Earnings Statement
The efficiency program played a significant role in Wells Fargo's earnings statement, particularly in the context of expense control and non-interest expenses. Here's a breakdown of the role of the efficiency program:
Role of Efficiency Program
Non-interest expenses rose 1% year-over-year, but fell 4% from the prior quarter, partly due to the impact of efficiency initiatives.
The company mentioned that the investments made in businesses, including increased spending in technology and advertising, were offset by lower operating losses and the impact of efficiency initiatives.
Definition and Goals of Efficiency Program
Although the efficiency program was not explicitly defined in the earnings statement, it appears to be an ongoing initiative to optimize operations, reduce costs, and improve productivity.
The goals of the efficiency program can be inferred as follows:
Reduce non-interest expenses
Improve profitability
Enhance returns
Impact on Earnings
The efficiency program contributed to the company's expense discipline, which supported its financial results.
The reduction in non-interest expenses due to efficiency initiatives helped improve the company's profitability.
Additional Insights
Wells Fargo has been methodically reducing headcount over the past few years, with a 23% decline in headcount since 2019.
The company is also investing in technology, including AI pilots, to drive growth and improve returns.
Overall, the efficiency program seems to be a key component of Wells Fargo's strategy to optimize operations, reduce costs, and improve profitability. While the exact details of the program are not explicitly stated, its impact on the company's financial results is evident.
@bx Does it matter if they are accelerating or not? I'd argue accelerating them would actually be better. Just get it over with and spare us this miserable uncertainty day in and day out. But given the comments in the earnings transcript (you did read that, right?) around attrition being the preference, it seems they want to continue this endless slog. And the evidence that they want you to quit is all around you. The layoffs and this garbage culture we're all drowning in is a valid complaint, regardless of the language being used to convey the dissatisfaction. The dissatisfaction and the drivers behind them are very real.
Okay, so they used a strong word in a hyperbolic way, but the underlying message remains unchanged, and it's unreasonable to just wholesale dismiss peoples point and call them crazy. People are pi---d off for good reason. It's not the posters fault for feelings of fear and anxiety; it's the leaderships fault.
So I will reiterate: The person who posted that is not the one creating the fear. And their message is not false or crazy.
“There is no conspiracy here. There is no crazy.”
(Immediately claims a conspiracy when others don’t share his interpretation of reality).
For real though: where on earth in the call is it said that layoffs are accelerating due to the asset cap being lifted, which is what you claimed?
The word “efficiency” appearing there does not back up what you said, no matter how many times it appears and how much patronizing you affect- they’re always carping about that. That’s what you claimed, and it ain’t there. It’s in your faulty cognition. Sorry man, but there’s no need to have a chip on your shoulder about this.
@br Let me help you out here:
- Open a browser and go to:
https://www.fool.com/earnings/call-transcripts/2025/07/15/wells-fargo-wfc-q2-2025-earnings-call-transcript/
- Press ctrl+f
- In the search bar near the top, type in the word "efficiency"
- Use the up and down arrows to jump to instances of the word
- Read those sections
Next, repeat the search steps, but this time type in AI. There is no conspiracy here. There is no crazy. There is, however, much talk about headcount and efficiency every single earnings call for the past several years. This is public knowledge and very easy to follow. If you payed any attention, you'd understand that they want that efficiency ratio to come down regardless of the asset cap.
I'm starting to think these people trying to discredit every complaint as some crazy conspiracy are actually HR PR people trying to shift the narrative. Or they're just sheep. Either way, people aren't making things up. Reducing headcount has been, and continues to be, a high priority initiative for Shart and Co.
@bs+1k0vneaf2 Nailed it. This wasn’t any bigger than “normal”. Just seems bigger because it affected people with an affinity for this site.
I don't think there was an increase. Maybe more of an increase in publicizing on this site. I bet it was the same amount just not everyone advertises.
Yeah he's the same troll who loves to spread the most fear with his blowhard apocalyptic analyses, which are usually very bizarre.
Oh nevermind, it's @bg spamming upvotes on his own comment again. No wonder it was insane: it's the crazy guy.
They could only improve efficiency with the asset cap with layoffs, so now that they can actually grow revenue without the cap they...accelerate layoffs? Makes perfect sense lol.
Listen to the earnings call from last week. The pressure on expense cuts now that we are out from under the asset cap is huge. Expect layoffs to accelerate from here forward as the analysts expect to OC to improve the efficiency rating, grow revenue, cut expenses, and boost earnings.
correct in that bonus eligible does not mean bonus guaranteed but for every person that doesn't get one there is someone that does. Heck, even if you are employed and bonus eligible, it doesn't mean you'll get one.
Most people laid off in Corp Risk get bonuses (prorated) after displacement. And the eligibility is 9/30, so likely why there may have been a bigger group this week because their 60 day non-working notice will end prior to 9/30.
@ag If you are employed through Sept 15 of the year, you are bonus 'eligible'. Whether you actually get one or not is a different story. Easier for them if you're let go prior....
I've never heard of anyone getting a bonus after they were displaced and I know many people who have been displaced. Don't count on it.
@a2 exactly! I'd expect more aggressive layoffs through those dates where the 60 day non working expires before Sept 15 (bonus eligibility).
They probably thought it was considerate to finish up some of the employee appreciation cr-p, then clear the log jam…
I don’t think they have to pay bonuses out to those laid off yesterday