Thread regarding Wells Fargo & Co. layoffs

A financial incentive of return to office

Something I learned recently is that a big reason banks want people back in the office has less to do with culture and more to do with money. Cities and states give companies tax breaks or abatements if they keep a certain number of jobs physically located in offices. If too many people are remote , the company risks losing those incentives, facing higher taxes in multiple places, or even having an abatement revoked if they don’t meet the headcount requirement.

I’m not saying I agree with it. I’m just the messenger here.

Local governments also want people in offices because it fuels the economy—restaurants, transit, parking, all of it. When offices are empty, that revenue drops, and the city is less willing to hand out big tax breaks.

So a lot of the return-to-office push is really tied to protecting tax agreements and the economic impact that comes from offices being filled.


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| 2162 views | | 12 replies (last October 4) | Reply
Post ID: @OP+1k6kha36n

12 replies (most recent on top)

@dz+1k6kha36n

High school grads know Jack and S about economics. You must be joking.

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Post ID: @gs+1k6kha36n

So you finally took a class on economics - welcome to what 90% of people who have a high school education already new. Oh, go you!!

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Post ID: @dz+1k6kha36n

I think it has more to do with people abusing the system during the pandemic, companies started monitoring and found out people worked more in the office.

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Post ID: @dv+1k6kha36n

Commercial Real Estate is propped up from commercial loans, right ? Too many remote drops demand and could cause the same with prices and consequently, loan portfolios.

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Post ID: @df+1k6kha36n

Breaking news.. we (and the media) have only been talking about RTO and the financial reasons behind it since roughly March of 2022. I hope you weren’t paying attention because of something important, because this was pretty important.🙄

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Post ID: @cg+1k6kha36n

The company doesn't really care about these tax breaks. They are bailing on tons of buildings every year. Sure, if one just happens to coincide with a major hub, they want to save a little on their tax bill, but they aren't going out of their way to get anything. It's chump change compared to the expense of housing people and maintaining the buildings. RTO is all about motivating attrition. That's all it is. Other things may be important, but not to the HY mafia.

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Post ID: @ca+1k6kha36n

@OP So to combat this, I buy a $2 train ticket and bring my own coffee and lunch to the office. They’re not getting an extra dime from me.

What’s hilarious is the pearl clutching from management about “saving and supporting local businesses” while WF simultaneously builds food halls that - you guessed it - undercut local businesses.

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Post ID: @c0+1k6kha36n

Sorry folks this is far more simple than that. RTO is a tactic used to shake some employees loose. Waves of layoffs to come in 2026 and 2027. Prepping for AI ultimately. Lots of companies doing this very same thing.

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Post ID: @av+1k6kha36n

That might be a secondary factor to some extent, but the primary driver for Wells is and always has been forcing attrition

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Post ID: @a5+1k6kha36n

@a1 oh that’s interesting. Yeah I’m sure it’s been out there a while. I just learned it today. I thought it was interesting.

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Post ID: @a2+1k6kha36n

This is old news. In some cities it makes a big difference - like San Francisco or Charlotte because they’re in urban areas with many businesses near the office. In Phoenix for example there’s not much near some of the offices - rose garden, black canyon, Chandler.

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Post ID: @a1+1k6kha36n

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