Thread regarding Enseo layoffs

Enseo Inc, Richardson Tx April 1, 2020 - Layoff and pay reductions at a sinking ship.

Enseo Inc. in the past three weeks has laid off nearly 50% of it's staff across all locations. It also implemented payroll cuts to everyone below ~100k USD in the form of 25% and everyone over that and the executive team are taking a 50% across the board pay cut. Today was the 2nd round of furloughed employees. The first round was around 25 contractors and full time employees and today was an additional 30, nearly all full time.

The down turn in the hospitality market driven by the social distancing and shelter in place rules around the country is surely an impact to this hospitality driven business. However, the initial layoffs mid-late March were despite the fact that impacts of the new guidelines have not hit. It was purely reactionary to "right size" the company given slacking sales and failure of Made Safe products and future growth. Things will likely get worse over the next 30 days as well. A company driven by its recurring satellite billing income will have to rely solely upon reserves to stay afloat in the coming weeks and months as it bleeds employees and attempts to right the sinking ship.

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Sinking may be an understatement. Reductions that large typically only happen as companies are looking for an out. Either a quick sale or a bankruptcy. Either way a c-appy time to lay people off, rather heartless. Companies doing this now are not reading the government details on how to tap into that 2Trillion in taxpayers dollars that DC pushed through. they can access the funds but so much for forgiveness of the debit.

The main features for small businesses are emergency grants and a forgivable loan program for companies with 500 or fewer employees. There are also changes to rules for expenses and deductions meant to make it easier for companies to keep employees on the payroll and stay open in the near-term.

Emergency grants: The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses to cover immediate operating costs.

Forgivable loans: There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June.

Relief for existing loans: There is $17 billion to cover six months of payments for small businesses already using SBA loans.

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