For those of us waiting for the Golden Package. What are the actual odds that we will get it? A billion dollars for severance. At approx 100K per head, that would be about 10K jobs. If there are approx 230K employees at the bank then that would be a 4.3% chance of being chosen for the package. Perhaps everyone doesn't get paid 100K and doesn't get a full year of severance. So, even if that's doubled, it's still only a 8.6% chance. Did I do that math right? Is the stress worth the wait?
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One of the unspoken issues with relocation is that if they offer to move you from someplace with the median baseline cost-of-living aka "Area 002" to the high cost-of-living areas (NY, SF, etc.) aka "Area 000", they will not increase the employee's compensation to compensate. Area 000 is defined by WF as being >=120% of the median baseline cost-of-living for the US. Translation: you will be voluntarily accepting a paycut.
FUWF
First reply is not correct about severance
severance is 2 wks for every year of service, with a minimum of 8 weeks. so if u r up to 4 yrs, you get 8 wks. Maximum payout is 52 weeks
60 days nonworking notice is on top of that.
the severance provision was for both BAU layoffs (like last year's) and location strategy layoffs. They only firmed up location strategy and timing in the second half of the year and that's why you heard about it in Q4
What that says to me is that they know what we all know already. Even if everyone impacted by location strategy was offered relo, very few will take it - thus severance cost. And not everyone will be offered relo anyway...
It’s the tenure of those of us being let go. It’s not just a years salary, it’s the 60 WARN notice period. PTO payout, benefits, unemployment, the worthless career coaches and the offboarding costs. Wouldn’t surprise me if they cut severance or figured out ways not to pay it at all (hearing rumors of this happening already), but Chucky got his ridiculous raise where everyone else got an avg of 3%.
I believe your team is correct. Quote from the CNBC article on the announcement...
“We’re looking at something like $750 million to a little less than a billion dollars of severance in the fourth quarter that we weren’t anticipating,” Scharf told investors.
The last four words clearly suggest that it's on top of costs that WERE anticipated.
There was a FT article that specifically noted that WF spent $186M to severance 7k employees in a certain quarter last year. If that avg holds up, $1B would be enough to downsize 37k people. I have a feeling they went after the low hanging fruit, using the low level employee genocide to 'encourage' others to quit and save the company some severance expenses. This year the gloves come off though, and no one is safe outside of HY.
Someone please correct me, but Wells may also be on the hook for increased unemployment insurance premiums in certain states, due to having laid off so many people. Part of that billion is probably allocated to those costs.
Again, someone please correct me if my understanding is wrong.
Rule of thumb is an average of $50K cost which comes to 20K people, though with higher tenure of remote location staff, it could be 15K people. In a good economy, natural attrition and retirements alone used to be 5-10% or between 10-20K annually. That does not seem to be happening over the past 2 years. Hence only 10K people for a billion$ and telling the wall street don't make sense.
I’ve brought this up to my team a few weeks ago and was reminded that the billion was probably on top of what they already had budgeted, which was like aggressive already - so your theoretical “odds” is out the window
Eliminate all the employees overseas and run the numbers again OP. We have closer to 175k domestic employees and a large majority of them are newbies that don't get much severance.
Additionally, the billion $ is just for this year, and the mass downsizing will continue for at least 3 more.
I will have 30 years this December; remote, non-hub. I am doing my best to hold out. Maxed out PTO, severance, all of it. IIRC, you max out at 25 years. Despite what some say here, Wells has been pretty good to me, it's going to be hard to leave on my own, or when they show me the door.
Here's the problem though. If you do the math for those of us that have been with the company (firm) for 20+ years, the cost to Wells Fargo to pay for relocation is cheaper than paying for severance. If you agree to relocate and then don't, the handbook specifically states that you are no longer eligible to receive a severance package. Pretty big decisions are on the horizon for thousands of us that believe we'll be offered a Relo Package.
Remote and non hub here. Doing what I need to each day so they can’t “manage” me out without severance.
So unless I kick the bucket first, my odds are good. Pony up the package,
Chuck!
Lmaoooo a full year of severance? Even with 90-day nonworking notice, you'd need 20 years of tenure for that
Then leave. Everybody has to make decisions for themselves and their situation. If you're only a year or two in then severance is like 4 weeks. It's not worth it, you might as well just find another job if you hate being at Wells. If you're at the company with decades of seniority and retirement a few years away it would make sense to hang in there if it's ok. I'm in a decent situation and would get nearly a year of severance. Why would I start over at another company when I already get tons of PTO and could a year paid vacation?
Heck after that first purge this year I've been thinking a package might be a decent thing to get.