Fidelity is expanding in 4 major areas to play catch-up with the industry: Cloud, Crypto, AI and Digital.
Question is, if they had to cut one of the above, which would it be?
My vote is crypto first and then slow down AI progress.
4 replies (most recent on top)
Cloud - the move to cloud IS the cost-cutting move, they say. Rebuilding our data centers to their former glory would require a large initial outlay of cash. Also consider that cloud service providers are vendors and Fid is a big money client, so you can bet the decision-makers are being wined and dined as hard as ever. Cost cutting would likely involve further outsourcing and offshoring, but Fid has learned firsthand that the ROI on that is terrible...
AI - Fid is already behind on this. Contracts with AI vendors will be secured years after the technology is mature. Far fewer jobs will be lost than you expect.
Crypto - The ship has sailed on this, crypto is too unstable for either growth or value, all that's left to do is assign some hotshot fund manager to milk the market dry while boomers fritter their pensions away chasing crypto gains that will never happen again
Digital - Fid is generating a lot of hype about what boils down to "no more paper statements." This will pi-s off older clientele but there's nowhere for them to go, and will be a non-issue in the coming decades. This ironically has led to the most job losses, as lower income mailroom and print workers have been laid off due to site shutdowns and outsourcing
Crypto is a d-mb fad. Bitcoin is facing serious liquidity issues and is coming under political heat. Definitely also a low interest rate phenomenon.
Cloud and AI - only a fool would back away from these. Pretty soon AI will be able to provide better financial advice than 99% of humans so it will be interesting how Fidelity adjusts its value proposition.
Cutting leads to layoffs, thus the post.
What type of question is that? This is the layoff forum.
Clearly the one You're considering or work in will be the one.
Also not sure if you've been using conference rooms for stupid meetings but several of us use them for taking care of personal relationship building events.