Thread regarding Wells Fargo & Co. layoffs

“Downsizing raises the perceived value of the firm but lowers the actual value.”

Good article, edited:

Layoffs should be the last resort, not a knee-jerk reaction to please shareholders.

A great CEO will first attempt cost-cutting measures and involve the entire workforce.

Involve employees to develop strategies.

Share information. Leaders should not run and hide in the board room. If the leaders are not out front communicating, employees will create answers to their own questions. And certainly do not force the employees to read news about their very own company in the media. Leaders are better off sharing information and often.

Great leaders start cost cutting with themselves. Leaders should lead by example and that means cutting their own salaries and benefits if that’s what is needed. Don’t ask employees to do something you are unwilling to do yourself. Suspend bonus payments for executives. This will send the message this is a team effort.*

What are other alternatives to layoffs?

Voluntary retirements.
Allow normal attrition to slim down workforce.
Reduction in hours for non-exempt employees.
Offer unpaid leave. There could be employees who would like some time-off to handle some personal matters, further their education, etc.
Offer reduced-salary sabbaticals with benefits.
Impose a hiring freeze.
Quickly work with under-performing employees. If they do not improve, respectfully part ways.
Cancel business travel, especially with the current accessibility of video conferencing.

Great companies outperform their competition, attract and retain the best talent, enjoy greater cooperation among team members, and experience high levels of customer satisfaction and employee innovation.

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Post ID: @OP+1muSjGGu

9 replies (most recent on top)

The article states "Great Companies "...we are not one
The article states "Great Leaders"...we have none

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Post ID: @2nke+1muSjGGu

Great companies have employees that care, a LOT. If people are just muddling along, competition will destroy the business. Go ahead and list all the things this exec team has done to improve how much employees care about their work.

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Post ID: @1wtj+1muSjGGu

Notice the words great companies throughout. That ended it for Wells Fargo. We are a cr-p company. Cut all the worthless senior management starting with the CEO

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Post ID: @1evp+1muSjGGu

This CEO is not progressive enough to consider these alternatives.
I’d personally consider a reduced salary sabbatical or unpaid leave.

Also, it’s not downsizing if he cuts XXXXX amount of US jobs and replaces XXXXX of those with India jobs.

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Post ID: @1mwe+1muSjGGu

We don't need a news article to tell us Chuckles is not a good CEO for the "firm".

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Post ID: @wpf+1muSjGGu

Not a lot of good CEOs and companies out there then considering almost every single company is laying off people. This was due to over hiring and Wells was a culprit of this for years and years. Instead of trying to improve efficiency with technology, they just hired more people. Then when the asset cap happened, Wells was caught with their pants down and could no longer afford that strategy.

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Post ID: @ryt+1muSjGGu

Layoffs never do anything besides demoralizing and overworking those left behind. If you are blessed enough to get laid off from Wells Fargo (that’s right, I said “blessed”) take the money and run. I will tell you from experience as someone who has been left behind to pick up the pieces that you’re in a much better place. This is literally the definition of a toxic relationship that blames you for their failures. I’m not at the point of walking with my parachute (after 14 years I feel I’m owed), but this isn’t a career anymore. I refuse to allow them to make me feel like it’s my fault at this point. It really is them and not me.

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Post ID: @ioo+1muSjGGu

Generals never win the war by gutting the soldiers.

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Post ID: @zuz+1muSjGGu

This hits the nail on the head for me as to why Charlie’s methods have had such a negative impact on employee sentiment and culture.

It is because our top executives are not leading by example. They are all making more money than ever before, and living the high life, while the employees have to bare all the hardships.

Let’s see some serious cost-cutting at the top to prove our leaders are accountable and taking their decisions at the company seriously.

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Post ID: @sdu+1muSjGGu

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