Wells Fargo Commits to Try and Retain Wachovia Staff

By Scot Herrick | Cube Rules Commentary

Oct 24

Call me totally skeptical. But, I hope this is true. Wells Fargo, in their purchase of Wachovia, is offering a different model of “layoff first, manage later” that I have consistently seen in my reviews of mergers.

The chief executive of Wells Fargo made no promises about job losses Wednesday when he addressed a crowd of Wachovia Corp. employees, but said he would make every effort to retain workers amid the banks’ combination.

“As we move forward, my job will be to help all of you stay with the company,” John Stumpf told employees who packed the Wachovia Atrium in Charlotte. He said the company would work to “retain and retrain” workers in positions duplicated through the merger.

Notice the very short commentary on “retain and retrain workers in positions duplicated through the merger.”

Now, I have no unique inside sources in these companies, but could offer a plausible method of implementing this approach. Companies usually lose 10% of their employees through attrition every year. Especially large financial companies. Especially lately. So moving these “duplicated positions” into other positions as attrition happens could very easily work. Plus, it would make sense to retain the best and the brightest from both companies instead of driving them out of one company.

Anyone working at Wells Fargo or Wachovia seen evidence of this retain and retrain approach?


About the Author

Scot Herrick is the author of “I’ve Landed My Dream Job–Now What???” and owner of Cube Rules, LLC. Scot has a long history of management and individual contribution in multiple Fortune 100 corporations.