Shortly before the FY2026 results will be announced on May 6th a global RA will hit all Northern European and north American teams. The scale of the RA will be unprecedented but is timed to address the disastrous financial results.
Fasten your seatbelts folks - this is the beginning of the end.
There is absolutely no new business! What do you think is going to happen? Marty only cares about the new $75k garage doors at the beach house, not you.
Using historical data: In fiscal 2024, they spent $190 million on severance, which resulted in the termination of approximately 10,000 employees. In fiscal 2025, they allocated $100 million, targeting around 5,200 jobs. By approving a $200 million charge for this upcoming round, they are mathematically targeting the elimination of roughly 10,000 to 11,000 additional employees globally.
On May 5, 2026, the Company approved, as part of its ongoing efforts to further streamline operations, workforce rebalancing actions designed to optimize and support the Company’s financial and operational efficiency. This gives authorization for management teams to implement workforce rebalancing actions in various jurisdictions, as appropriate. Decisions regarding any workforce rebalancing would be evaluated on an ongoing basis, determined on a local level and would consider applicable local employment and labor law requirements, workforce considerations, and economic factors.
The Company estimates that it will incur workforce rebalancing charges of approximately $200 million, primarily consisting of future cash expenditures for severance and related benefits. These costs are expected to be incurred substantially in the first quarter of the Company’s fiscal year 2027, and the Company expects that the related actions will be substantially complete by the end of the fiscal year 2027, subject to all applicable local law and consultation requirements.
The Company expects that such workforce rebalancing efforts, once completed, will result in annualized run-rate operating expense savings of approximately $400 to $500 million in the Company’s fiscal year 2028.
The estimate of costs that the Company expects to incur and savings that the Company expects to achieve, and the timing thereof, are subject to a number of assumptions and actual results may differ from current expectations. The Company may also incur charges and expenditures not currently contemplated due to unanticipated events that may occur in connection with the foregoing. The Company may revise its estimates, as appropriate, consistent with GAAP.
@2f7. Not Yet.
Anyone hearing anything?
@160 My roller coaster cart rattles up to point of no return..
@OP Bye team!
@vk This is very country specific, based on labour laws. I know someone from Americas who has been on the bench since mid-December, 5 months so far, and still there. Others, in some parts of Europe, were exited shortly after being notified - no bench. Guessing they are building up bench so they can 'streamline' sometime after results are posted in an effort to boost stock price and get the execs their bonuses - since they probably missed Q4 bonuses.
The annual taxes on Marty's beach house are like 20 employees.
In one of the European locations, they’ve let go of over 200 people since December. There are still 100+ sitting on the bench, and while they’ve been cutting 25–30 people every single month, that number jumped to over 50 this March.
@sa Not true. I know cases where folks were fired directly with severance. Just 1:2 session (out of the blue) suddenly, no explanation of reasons, just "there is a situation and HR have an offer for you..", take it or leave it. Yes, those who didn't take it were fried on the bench slowly indeed.
This tracks rumblings I’m hearing, and a general air of fear in the teams I interact with.
All speculation.
At least in the US, people go to the bench before being cut.
@gy I remember that very well, barely survived those cuts, might not be lucky this time
@gc Call it speculation if you want. Do you recall the FY25 timeline? April was for management shortlists, May was for the 1:2 HR sessions. The fiscal year ended March 31. We are right on schedule.
All speculation…
@bk Classic M@rt¥ playing the old IBM playbook here. He’s going for a 'Big Bath' strategy—shoving all the trash, including massive severance hits, into FY26 before the May 6th call. By nuking the balance sheet now, he can claim a 'clean slate' for FY27 and pitch a turnaround story to the SEC. It’s a high-stakes gamble because May 6th is also D-Day at the court, where the judge finally opens the envelope on the lead plaintiff. He needs to show a 'reformed' company before the legal hammer drops. Same old story: management protects the narrative, protects the Cs/VPs pets / all visibility theatre actors, while the hands on pros take the hit.
Why only Northern European teams and not rest of Europe?
How do you know this, or are you just speculating??