Financial services company Wells Fargo, is looking to reduce redundant roles from support functions and technology testing in India. A workforce of 20,000 people across Hyderabad, Bengaluru and Chennai is expected to get affected.
According to the report, “As of now, the company has discontinued certain incentives and perks for the employees. The company is reviewing specific support and other functions to ascertain if there are more people for one particular piece of work. They are also indirectly telling some employees to look for options outside.”
The BFSI sector has witnessed quite a few layoffs in a span of few months. In August, the Hongkong and Shanghai Banking Corporation (HSBC) Bank has announced that it has fired around 200 of its employees in India from its technology function. Deutsche Bank has been cutting jobs globally, impacting about 18,000 jobs – one fifth of its global staff. While exactly what is causing these job cuts remains uncertain, there are a few things like the fintech revolution, slowdown of other industries and other global economic tensions like the US-China Trade War and Brexit, which are urging the banks, NBFCs and financial services firms to cut costs and restructure.
Layoffs are often driven by major market changes and company’s inability to efficiently cope with it. The cost of the entire market’s or company’s failure is often beared by the many employees whose jobs are displaced. While mass job cuts allow companies to recover profitability, the laid off professionals are left with anxiety and stress. It is therefore important in today’s era for every professional to have a back up plan ready to face such unforeseen challenges. Agile professionals with a strong network are the ones to benefit during difficult times like these, as they have more options to explore. Organizations and senior leaders should also prepare their workforce for scenarios like these, especially now when the entire world faces economic slowdown. Developing talent for multiple roles, investing in building behavioral competencies and enhancing their strengths might be helpful. Leaders can also help them prepare alternate career paths.