Thread regarding Bank of New York Mellon Corp. layoffs

@1vwn

Please let it go until you understand pricing, revenue, costs and expenses.

Until then it’s all gibberish.

@2zad, BNYM is know for charging a premium for our services. We are NOT a low cost provider.

@1vwn

Two year University of Phoenix Associates degree . That’s where they learn to mix up costs with revenues.

BNYM is indeed a low cost provider (in terms of fees we charge). Maybe they aren't the lowest, but the reputation on both the street and people who know our financials would attest they are quite low. The company is CHEAP, pay is very low compared to other firms, and any profit is squandered on failed technology initiatives. Most clients are underwater.

Sec Lending = almost zero margin because of all the fixed costs
FX = better margins, but not enough.

State Street's markets group has a much better model. Citi has lower costs because of their wide custodian network. JPM charges a quite a lot, but they have both scale and the ability to have white glove service models. BBH is also white glove, but they are a joke firm these days. Why would any client go to BNYM?
BNYM has more bureaucrats that create obstacles and red tape while people doing the actual work are either underpaid or let go.

If you seriously dispute BNYM being a low cost provider, you're either a shill for this sinking ship's senior leadership or you actually take the short bus to work.

Sound like a broken record. Losing business to competitors so squeezing margins to get new clients, find out within a couple of years that business model isn't viable. Increase automation , still not profitable, outsource 15 % of staff to offshore location and lay off onshore people. Clients questioning decision. Still not profitable so offshoring 30 % of staff. Client very unhappy. Still not profitable. Last round of layoff/ offshoring. Clients leaving to competitors with local staff....and ...start again.

@kog

Reduction of Spans and Layers was the right approach, but Charlie left after two massive layoffs and now we have 4 3/4 years and counting without a badly needed layoff. And no, the 1% layoff in January wasn't even a drop in the bucket.

If we don’t learn how to cut at the top we’re through.

@1vui

Yes, that’s the Operations problem. Can’t afford to hire onshore Operations so we hire offshore Operations and try to script jobs for them.

On the bright side the H-1B Offshore Technology teams are really good and many out do their U.S. based coworkers.

@OP

No, BNYM is NOT a “low cost provider”. BNYM is a Low PRICED provider with high costs.

That in a nutshell is our business problem and that’s why we need to lay off.

State Street and Northern Trust solved the cost issue it with technology. BNYM tried to solve it by deploying Roman Regelman to some LinkedIn communications project.

Bigger problem is that there are tons of rank and file staff in “low cost locations” that aren’t pulling their weight. They cost less in the surface but pound for pound they are not worth the lesser cost. The real cost involves lots of hand holding, lower productivity, no business understanding, and work not getting done when “top heavy” employees are off hours and offshore staff are supposed to be working but nothing gets done. How many holidays does India have for example? Seems like 30. Plus every US holiday is basically a holiday for workers in every other location.

Low cost provider??? What planet are you from?

Wasn’t Spans and Layers the magic cure for this?

Most if not all corporations with long histories are too top heavy and too slow to change with the times. Some figure out how to survive while others cease to exist. BNYM will survive. Who knows in what form. Too many vested interests to let the ship sink.