Thoughts??
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Consulting getting rifted. If you’re part of surge, don’t plan on going back to old roles.
Word just came down: There is a bonus this year which will pay out in Sept.
Raises will happen, but will kick in later on January 1. Financials say we're doing good, not perfect, but a lot better than R&R is probably doing. Hiring is picking back up for critical positions.
in May we were asked to rank employees again after just being asked a few months earlier before pandemic hit. Management has been preparing for this. Sad but not suprised.
That would explain Why BK did not send an email guaranteeing no layoffs for the next two months
Upper management, get ready...
Brian Krzanich also stated no redundancies will be made due to the financial impact, but those let go in the UK have all been told it has happened due to the financial figures not hitting target.
Brian Krzanich (BK) is a bad CEO. At Intel it was reported he destroyed the culture and morale, fired or pushed out all the good execs, and created poor strategies that Intel is still reeling from today. So many failures are attributed to his blunders. CDKI is in for dire straights. He might make things look good initially but once he pilfers the coffers you're in a lot of trouble.
CDKI are still going through first round of redundancies and no guarantee they will stop after this, with major dealer groups in the UK announcing redundancies(example Lookers group 1500 staff) The recurring revenue is going to be taking a dip.
@19jte+141VOxeV that’s some what correct
He did extend the commitment but he did not say they may drop the die regardless...
He reassured the company that that does not mean after 2 months we are going to start seeing cuts. He assured us that they will look and make the decision to commit or not just as they have been doing. Every two months and not to feel for the worse after words given an unknown situation we are making the best of.
Update: CEO extended the 'no layoff or furloughs' decision to July 31 now, and will update in two month increments. He stressed that this does not mean that there will be any by then, but that they will re-evaluate the situation with COVID-19 every two months, and went out of his way to stress that business is recovering.
@12wpd+141VOxeV Not 10% and not happening in any one day. It has been going on for months, happens on a case by case basis, and most have already left or have found new roles on the US side of the books.
Again, read the quarterly 10Qs, they are public, and they actually explain in detail.
The UK layoffs have just kicked in big time i hear!
Any trends starting to emerge of specific roles across CDKi? Have not encountered anyone yet in UK who has been impacted, or they are keeping to themselves
@Tiot+141VOxeV they are realigning the international side to slipstream many of their functions into already existing functions on US operations side, so any redundant staff overseas will naturally be let go. This is why it is by headcount and not wage bill (wage bill = cut by a certain $$$, and headcount = remove specific excess/redundant jobs).
In the process it preserves jobs in the US, which sux for EMEA/Asia, but at least good for US workers. The polar opposite of offshoring.
It's all explained in the SEC quarterlies.
10% I bet that is similar to the massive layoff of 2018. Dont be suprised if US is impacted as well as they tighten up parts of the business.
Blimey, 10% of headcount is a large proportion of staff.
Reducing headcount likely reduces customer satisfaction/retention & will dilute margins even further as customers migrate to other providers.
UK seems like 10% employee reduction appears to be the target.
That is headcount not wage bill.
@Phsf+141VOxeV CDKi = international division. This means there is restructuring and layoff of staff overseas (Hyderabad, Hungerford, various EU/EMEA offices, etc) and it was planned for a long time, with a few of the jobs and functions coming back to the USA.
Item 5. Other Information
Costs Associated with Exit or Disposal Activities. On May 2, 2020, the Company adopted a plan to restructure the CDKI segment to reduce costs and
improve margins. The Company expects to substantially complete the restructuring actions by June 30, 2020. The Company expects to incur costs related
to one-time employee termination benefits up to $30.0 million, which will be paid in cash in the fourth quarter of fiscal 2020 and the first two quarters of
fiscal 2021.
@Heei+141VOxeV Saying "layoffs are coming" is like saying "the sun will rise tomorrow". Have you not looked around lately? Any company that doesn't do layoffs by July will be a miracle at this rate, because politics is taking over from science and governors are hinting at keeping us all locked-up for months. The question is, how bad will it be and who gets it.
They could have went nuts with layoffs early and nobody would have said 'boo about it since 25+ million other poor b–tards got laid off everywhere else. They instead slash prices and held off until at least the end of May. Not exactly a sign of bad intent, is it?
MacDonald tried to help sell the company off in a leveraged buyout and drown it in debt while he and his activist investor buddies would have made off like bandits. Yes, BM is an evil, incompetent a**hat who got fired from Hertz before he got to CDK, and was fired from CDK after he failed to enrich the board at the employees' long-term expense. He deserves all the derision he can get.
Krzanich on the other hand has, so far, been on the up-and-up inside and out since he took over, and has given no reason to hate on him. Your link points to some EEOC investigation in Oregon that even the article author says is inconclusive, so that doesn't say much. Sorry, but unless you can point to something more solid, BK is nowhere near the f**ktard that BM was. Not saying BK is a saint, but he's not BM by any stretch.
Layoffs are coming, for those bashing Brian McDonald should be aware that Brian Krzanich is no better. Research his track record. When Brian was Intel’s CEO, it is very well known that he led the largest job cuts in the company's history. Thousands of American workers were replaced with H1B and OPT workers.
Do your research, here is a link to get you started:
https://www.oregonlive.com/silicon-forest/2019/12/age-discrimination-intel-investigation-drags-on-for-years-highlighting-legal-pitfalls.html
- with
- you're
- sane
- choose
- What "conspiracy theories" are you talking about?
- If you are employed in any substantial capacity at CDK with grammar skills like that, maybe more layoffs are in order.
@Eiir+141VOxeV - I actually see both sides of it, which is why I specifically mentioned the improvements since MacDonald was kicked to the curb.
Perhaps you meant to call someone else out?
@Dskq+141VOxeV
Sorry if it busts your sludge bouble of lay off spite. Whatever Mr evil ceo/ shareholder did to you is a thing of the past. The company had changed and the majority of people see the good in it. Rather you like it or not ranting and attacking people here won’t help you. We will be here you will be in spite
Here we go will the the conspiracy theories
Go back to redit. If you believe for one second that the company gives a c-ap about this site your wrong.
No sain person takes one side and you chose the negative
Two different companies are being talked about here. One was the (evil) CDK run by rightfully-fired Brian MacDonald, a company that was nearly broken by leveraged buyout and the corpse sold to Bain Capital and Silverlake. They instead settled for (sadly legalized) theft by way of activist investors.
The other CDK is the (not nearly as evil) CDK run by the current CEO and is actually putting forth an honest effort to make things right both inside and out. The like and dislike voting/posting depends on whether the poster was canned by McDonald and his numerous attempts at layoffs-to-boost-numbers, or whether the poster survived all that garbage and got to see the improvements made since then.
There’s some serious like and dislike brigading going on here. Is it HR, management, or worse, misguided brown nosing employees with misplaced loyalty to CDK? The replies show a lack of reading comprehension and the attitudes show a complete absence of critical thinking skills. “So go start your own company then!” has to be the most juvenile response I’ve read to date. The cope is indeed strong here, but it’s not coming from disgruntled employees. It’s coming from employees who likely have few other options.
So make your own company you clearly know more then everyone and better yet what they don’t know.
Your on a lay off board clearly not biased in judgement at all.
It’s all evil investors blah blah blah. You know what reality is.
People working at CDK have a job and will for at least a month more. Can you say the same for 1/6th if America no!
@Azzi+141VOxeV
The poster you're attacking has a point. A couple years ago "activist" hedge funds invaded CDK like a virus. They put their stooges on the board and got MacDonald appointed as CEO. Then came the waves of layoffs huge loans to buy back stock all to pump up their share price. Now they're gone and we're stuck with the mess. I can't read anyone's mind but that type of investor is bad news.
@Azzi+141VOxeV
So your a mind reader now
Let me read yours
“Everyone in a position of power is out to get me”
Wana come out of 3rd grade now?
@Ardf+141VOxeV it's a balance in act...hard for workers to focus on retirement in the future if they are laid off now. funny you mention mentioning about the future because the investors who messed up CDK were only worried about the short term profit and d*mn everything else!
Who do people think companies don’t deserve money. And only spite evil 247.
People was up in arms when Disney was paying off share holders.. News flash those share holders run your 401k and retirement funds. If you cared more about the future more then the present you’d know that...
What the he’ll is wrong with you kids!
@zmwh+141VOxeV investors only lost recently because the whole economy is bad because of the crisis. but investors can be blamed pushing for the stock buybacks using debt and the huge layoffs that saw many good employees fired. investor greed made CDK more vulnerable to what is coming.
@yjeo+141VOxeV - given a quick look at the stock price, it appears the investors already have given up quite a bit.
One thing ls for sure this site is full of pessimistic p-ss-d off boomers.
Everything’s even and no one has good intent
Employees like that needs fired and blacklisted
@yjak+141VOxeV It’s the best PR possible. If layoffs result then CEO can say he tried his best by even giving up own salary. let’s see investors give up something for the sake of CDK and the workers
@xpal+141VOxeV - it isn't just good PR (yes he can live off of stock and existing savings), it also frees up enough money to pay quite a few salaries. That, and he's under no obligation to do it. Lord knows the previous CEO (the ever-incompetent Brian McDonald) wouldn't have done this, and would have likely slashed half the payroll by now.
@wmva+141VOxeV It's good PR. CEO has huge amount of stock probably not just salary
CDK layoffs are usually July or August