Thread regarding Charles Schwab Corp. layoffs

How was cut number determined?

Seeking clarity on how the cut target number was determined ($500M in expenses via layoffs and building closures). I understand the need for cuts, but the number sounds arbitrary though I'm sure it's not. Would like to know more about the rationale.

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Post ID: @OP+1nIOMJVO

6 replies (most recent on top)

They threw a dart

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Post ID: @vgc+1nIOMJVO

None of this is well thought-out or has long-term vision - seems to me more desperation to please the board/shareholders at any cost in the next 2 quarters.
Listen to the July 18 recording where he says none of them have the answers...so instead ask your manager. Does not inspire confidence in this decision-making.

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Post ID: @vql+1nIOMJVO

It is a suspiciously round number. Walt probably said a number out loud that sounded good, the board liked it and now the EC is furiously working backwards to do the math.

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Post ID: @lkz+1nIOMJVO

As indicated in the email, they felt there was an excess of like ~20% of people in the workforce that they didn't anticipate. I don't think they lay off 20%, probably more around 10% of the workforce.

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Post ID: @kra+1nIOMJVO

I think the majority of people would like to know more rationale about many things. Don’t count on it. This is the new normal. There’s only us and them now.

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Post ID: @vnv+1nIOMJVO

If you have to ask, you’re not entitled to the information. Now get back up work.

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Post ID: @rjm+1nIOMJVO

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