Thread regarding ADP layoffs

Continued Layoffs and Bad Managment

Straight from earnings report yesterday:

https://s23.q4cdn.com/483669984/files/doc_financials/quarterly/2019/Q4/ADP-4Q19-Earnings-Release.pdf

"As part of its ongoing transformation strategy, in the fourth quarter of fiscal 2019 ADP implemented a Workforce Optimization initiative to reduce management layers and increase spans of controls."

Carlos Rodriguez said: “We are pleased that we have balanced our financial growth objectives with a number of operational priorities. We continued to successfully execute on our transformation initiatives, launched a new brand campaign, and made significant progress on our next generation platforms as we stay focused on creating long-term shareholder value.”

“ADP remains committed to reinvesting in its product, distribution, and service to drive sustainable growth,” said Kathleen Winters, Chief Financial Officer, ADP. “And we are moving forward with our transformation initiatives as we look to both simplify the organization and enhance our competitive positioning.”

So, bottom line, full steam ahead with more layoffs! Bend over folks, it's going to continue!

And... the result: regardless, the stock is still down a good bit today while the market is almost all green otherwise.

ADP is a textbook example of mis-management sacrificing stability and growth for short term gains for the greedy executives!

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| 4442 views | | 23 replies (last January 29, 2020) | Reply
Post ID: @OP+10kho8OM

23 replies (most recent on top)

I was with ADP from 2013-2018 in NAS Implementation. Suffered work related travel accident, had cervical surgery in early 2018. They ‘laid me off’ because my position had been eliminated, all while I was on STD protected employment status. Their false info to long term disability leaves me still fighting for those funds 2 years later. Turns out I’m allergic to the metal implants. Should not have been fired, near perfect performance reviews for 5 years. It’s like being caught in a nightmare!

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Post ID: @2Vtdl+10kho8OM

@10kho8OM-uyh-Tsk! Tsk! Tsk! I'm guessing not too smart and low-grade paid.

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Post ID: @qzml+10kho8OM

@10kho8OM-4cnx:

So you don't get to sit in on Carlos' meeting with his direct reports? Well, neither do I. However, you don't have to see the decision making or be a part of that process. You only have to see the disastrous results that has been produced from that decision making. Getting rid of top performing employees has been the result of the decision making, not dead wood. Loss of quality service has been the result of the decision making. Enraged clients and lost clientele has been the result of the decision making. Disaffected low paid employees who want to learn and contribute but are leaving because of flawed and broken processes are the result because of the decision making. If this is success from these secret opaque decision makers, then show me what failure is. ADP is now a broken company lurching here and there trying ineptly to recover.

Again, you don't need to see the decision making, merely the results that it produces. What has been produced is hurting ADP, in a big way. The decision makers have been inept in providing stewardship for their company by making serious mistakes in their decision making process. That shame cannot be hidden in that nebulous decision making process. Major mistakes have been made. Major mistakes yielding major disasters. Oh yes, again from the decision making process.

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Post ID: @4qur+10kho8OM

I’m also a current associate with over 15 years with ADP. I don’t have the benefit of sitting in Carlos’ meetings with his direct reports so I don’t know all the reasons for the changes we’ve been seeing.

I can only take some educated guesses.

One, I believe we’d gotten very top heavy in management. The OEI initiative in 2009 streamlined the company, optimized reporting lines, etc. but since then we’ve gotten away from the underlying principles behind OEI.

Two (and related to One), managers in their effort to keep high performing associates have been handing out promotions like Halloween candy. There are so many directors and VPs, it’s comical.

Three, there’s a lot of dead weight. Long timers who are collecting fat paychecks but not contributing much to the business. Some of this is tied to the large amount of home based associates, but there are numerous reasons.

There are other reasons, but those were at the forefront of my mind.

And for those suggesting that current associates “take their head out of the sand” and find another place of employment, it’s not that easy to get hired when you’re in your mid 50s making above average wages. Especially if you’ve worked in one of the specialized departments where your skills don’t translate very well to companies outside of this industry.

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Post ID: @4cnx+10kho8OM

Don't need to defend what you wrote? That is "head in the sand" thinking! So you just say what you want and hope that is what happens. That's right, don't support your position with any facts! Absolutely amazing attitude!

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Post ID: @4eye+10kho8OM

Jiko, very well stated. You don’t need to defend what you wrote. All the best to you.

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Post ID: @4gpg+10kho8OM

Jiko,

What were the reasons for those changes? And what were the changes that were made from your perspective? I would have expected at least an overview of this to support your argument.

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Post ID: @3qcz+10kho8OM

I am a current associate living through all the changes.

While I agree that the current culture is not the same as when I started 25 years ago, that’s not necessarily a bad thing from a 30,000 foot view.

As a long-tenured associate I certainly don’t feel as secure as I used to. I’m not blind to the trend of hiring in lower cost centers. However, I don’t believe that the company is doomed for because of these changes. These changes were made necessary for a slew of reasons.

I’m grateful for ADP for the career it has afforded me. Ive been able to put my children through college and will always be thankful for the opportunities I’ve had. If I’m laid off tomorrow I would feel no different.

As long as I’m employed I will continue to work hard and make contributions to the business until such time that I’m not longer cost-effective or valued.

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Post ID: @3wwl+10kho8OM

Still wasting your time here? So you do have a vested interest here after all. Ok, that's fine. And don't put words into my mouth. I never said that you don't have a right to post here. Reread my posts. I actually invited you to post more - "Please continue to waste your time". So don't twist things around. Everyone has a right to post here. And there are many people who post here, not just me.

And my motivation? To post here like everyone else. I have a right to post here just like you do. I worked at ADP for close to three decades. I am now comfortably retired and I am not angry at anyone. In fact, my family income streams now exceed the salary I was making at ADP. I am now enjoying life more and have plenty of time to post here and on other sites.

You have posted here before and we've had similar conversations. For anyone interested, just peruse the older posts. Talk about motivation.

So here we go again. ADP wanted to save on labor costs and not "reinvent" itself or get better workers. Again, the aim was to save money and not to improve the quality of workers or to get rid of workers that were somehow inept and not doing their jobs well or impeding management. ADP cut its knowledge base by doing this since it takes years for workers to be proficient. The new cheap workers that have/are now been/being hired are paid about a third of what the laid off workers were. With most of the old timers gone, the new workers have no one to turn to since the experts are gone and are now floundering. They also don't have a vested interest to stay with ADP for long because their pay is so low for the complex work that has to be done. So it is now a revolving door of workers quitting or being fired since they are having problems doing their jobs and then new employees being hired in. Since the new workers are having difficulties, they are not able to service ADP's clients well, which is enraging those clients.

This is gross ineptness from ADP's management team who didn't know about how complex the work at their company is. So it seems strange to blame the laid off workers for ADP's problems. The ADP management team is completely responsible for this state of affairs.

So again, please continue to post your thoughts here at this "fantasy site". The only trouble is, many people don't see this site as fantasy, but as reality.

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Post ID: @3prh+10kho8OM

I took the VERP after nearly 40 years. Yes, the company has changed but needed to. Obviously a lot of good talent was let go with the changes and yes, hard for many to accept. To the poster that said, ‘ after their check cleared there’s a clean slate’, perfectly worded, that’s how I always went about the agreement I had with the company. Is Carlos perfect.....nope, but neither am I.

My best to all those b4 and after me. ADP will thrive.

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Post ID: @3msx+10kho8OM

I spend a lot less time on this site than you do, and I have just as much right to post here as you do. What exactly is your point in posting here?

Mine is simple, just put some reality into the overall thread. I don't have any motivation other than that. Nothing to gain, and nothing to lose.

And yours? Trying to keep anyone from working at ADP in the future? Make yourself feel better by bashing a company that has somehow done you wrong? Do what you can to damage the company?
I'm really curious what your motivation is.

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Post ID: @3mfm+10kho8OM

If you have no raw nerves and no damage control then why do you keep posting on this fantasy site? Obviously you don't like what is posted on this site and are taking the trouble to post here and to waste your time.

Well, sorry, but people are going to post on this site whether you like what they say or not. And most of these posts are not going to be to your liking.

No one can predict when and if ADP will collapse. But what is clear is that ADP is no longer a good place to work. And the magnitude of the errors made by the top management is very serious. Very serious indeed.

Please continue to waste your time on this "fantasy site".

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Post ID: @2wxo+10kho8OM

No raw nerves and have no reason for damage control. Really don't care but the amount of pure c-ap on this site is funny to watch. And, there are people that come to this site that don't know what's going on that deserve a bit of truth, and a lot of what's on here is not that. The company is on a mission to change. That is true. That means they are revamping their workforce. That is also true. What isn't true, or certainly hasn't proven out, is that the changes will negatively affect the future of the company. It will negatively affect the future of certain associates that are asked to leave, but he company itself will be just fine without them. We are hearing from those associates at risk, and I was one of them before I made the jump. Just don't make the leap that the company is in trouble because you are.

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Post ID: @2qoy+10kho8OM

If this site is good for a laugh, then laugh away. Why even bother to post anything if the stuff posted here is pure fantasy?

But apparently raw nerves have been hit and damage control has to be done. Serious management mistakes have been made which have been discussed by posters here who also have many years of experience. I myself have worked for ADP for almost 30 years. The problems faced by ADP are severe. Superficial statistics don't show the full picture. But if things are fine as you say, don't worry about it.

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Post ID: @2dyx+10kho8OM

Shutting doors? That's fantasy talk that's been spewed on this site for years, all the while the stock price continues to climb, revenues climb, and ADP is one of the most stable companies on the planet from a financial perspective with so much positive cash flow they rank in the top of the top for credit ratings. You may not like their approach to the future, and think they can't survive without old expensive workers, but so far you couldn't be more wrong in that assessment.

This site is good for a laugh if nothing else. Coming from someone who spent 20 years in senior positions at ADP and left because the writing was on the wall. People have to do what's best for them, and companies likewise. You don't owe them anything and they don't owe you anything. Every time you get paid, the slate is clean.

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Post ID: @2vhk+10kho8OM

"ADP isn't shutting its doors anytime soon". You can bury your head in the sand and pretend it isn't so. However, the evidence speaks otherwise. ADP is having serious mismanagement problems that many here have explained. Wishing it away doesn't make it go away. Doom and gloom? Just reality.

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Post ID: @2brz+10kho8OM

If I’m a betting woman I would put money that ADP isn’t shutting its doors anytime soon, despite the doom and gloomers who frequent this site.

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Post ID: @2nkf+10kho8OM

The bottom line is that ADP is in decline. Stupid decisions were made by the management team which has hobbled the company. A former stellar company is in trouble, with its top management continuing its destructive policies. It is too late to save it.

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Post ID: @1cab+10kho8OM

You obviously didn’t study Statistics or Economics in-depth. You never trust publicized #’s. They are MADE public not necessarily True. @10kho8OM-

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Post ID: @1qoh+10kho8OM

More layoffs. More lies. More horrid management. More stock price drops. It is amazing how just poor the management is here at ADP. I can't get out of here fast enough!

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Post ID: @1iji+10kho8OM

Serious question. When you wrote this, "Tried to tell em. Crashing 401ks and other signs. No one wants to pay attention. Move your $$$ or you won’t have any." what are you trying to say?

You do realize that no one with an ADP 401K can invest in ADP stock anymore other than what might be in the mutual funds that are offered. 401K's are not crashing, they've been growing for over 10 years as has ADP stock. So, where are people supposed to move their money from and to?

And, who did you try to "tell"?

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Post ID: @uyh+10kho8OM

Yes, it does look like more layoffs (oh, sorry, I mean "Workforce Optimization"). Apparently, that is the only thing that ADP management knows how to do. But after awhile, you do run out of people to lay off. Then comes the nosedive into oblivion.

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Post ID: @xit+10kho8OM

Tried to tell em. Crashing 401ks and other signs. No one wants to pay attention. Move your $$$ or you won’t have any.

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Post ID: @fwc+10kho8OM

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