Been hearing whispers that 80 more is just the beginning. Been here for 16 years and things are getting really shady. 1Q look for more work moving offshore which is obvious. And with that many more supervisors and managers on the way out. 400-500 more isn’t out of the question.
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More layoffs are coming as they consolidating several call centers and renting out space to 3rd parties.
I started working at ADS back in 2014 Jan. I liked the environment, however after a few months and realizing their growth strategy I was in shock. I knew doubling accounts receivables every 5 years or so was a huge problem. When you issue an account receivable you lower liquidity so I realized they had to be getting money somewhere else to fund operations. I then found that they are securitizing accounts receivables. Basically they are using securitization to borrow against or sell the receivables to other investors (banks mainly, investment banks). When I realized this I knew and told everyone this company is either limited in its going concern (future economic continuance) or they will gain large number of accounts and either implode or sell off. I was looked at someone who they dismissed and of course unless senior management changed the direction of the company it didn't matter. I told fellow employees in Rio Rancho that employment is limited to business needs and the ability to finance those needs. Rio Rancho among other sites are non capital sites meaning they are rented. I was told that ADS owned all their sites and I knew either management was told this or they just didn't know. I knew better. Anyhow just watch as those sites close in the future. They company will be unable in the near future to fund the large number of accounts receivables and the ever increase cost of operations they will pull back, and they have to. I saw this early this year 2019 when they started closing accounts due to regulations and mitigation loss risk. I was working in SAS by this time. I have since left the company and sold my stock at 215 a share. I work as a state tax auditor now. Anyhow they company will continue to have to keep liquidity up especially now since they are offering traditional banking services (banking accounts). Federal regulations require banks have a certain amount of funds available and liquidity. So they will need to abandon their double accounts receivables growth plan as I don't see this as an attainable goal anymore. ADS, will need to make sure they meet regulations and also keep costs down so they will continue to lay off employees as this is the single largest expense most companies have. There is also a new accounting method that is governed by FASB and PCAOB which will require ADS to estimate bad debts on this new estimation method. It is predicted that banks will have to reduce loaning money as they will increase bad debt estimations at a higher level.
The company will lay off probably around 10% or more of its employees, the sale of Epsilon was just the first of many changes required for this company for future acquisition by another company or survival of this company. I would even argue that Loyalty One will soon be separated from ADS.
When a company is about to acquired or merge with another company its common practice to sell off other arms of the business that are less profitable and reduce or trim fat. This starts at upper management. It will be interesting to see what happens next.
ADS thrives on lying to employees. Our manager said the first 300 layoffs were the first ever and wouldn't be anymore. I wonder if they wont just offshore everything at some point. Watch Signet and others drop them big time when customers complain.
short the stock, get on robinhood and buy ADS PUTS
I should have followed my gut and left that sinking ship last year.
My gut instinct has been telling me to get out of ADS for years now. It's looks like I will be getting my opportunity soon! I'll miss the people, but I certainly won't miss the culture over the past few years. Too PC and sterile for my tastes. Time to move on.
Yes, irresponsible short term mentality. Don’t worry, all the bigwigs are set for life w their golden chutes. And some other company will benefit from a low cost acquisition. Local families and clients get the shaft.
This is a company being prepped for sale..that is the strategy here
I just don't get the strategy to move as much off shore as possible. It solves a short-term expense problem, but it will cost you in the end. Hopefully the new CEO puts a stop to this.
I believe you are right about the whispers, they ring true.
The more they outsource the more vendors they will lose to competitors that don't. It may take some time but just watch. They already have India marketing department maybe that is fine for their culture if we have clients in India but since our clients are in America I think we need to ship whoever had this brilliant idea oversees for good. I wonder how long the company will last. I do not see a bright future for Alliance Data due to poor decision making.
It is sad they have let the children run this company into the ground.