Some rumblings that layoffs are around the corner ...regardless of COVID-19 outcomes. This oil price thing really broke the Emerson camel's back.
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Emerson is surviving on spare parts sales. 80 percentage of orders coming from local business partners and 70% of which is spare parts
Intellution, Daniel, Roxar, Virgo, SAAB, etc all questions were k–led and s—ed the technologies or money or installed bases ... the fate of all acquisitions are k–led for the CEO survival...
Groupism and mafia gang working at the corporate and all management levels to k–l true professionals in the organization.
Oil & gas market, as well as many other markets, will recover
Economy and industry will need oil and gas for at least the next 30 years
Problem with emerson is that management decision is driven bt next quarter financial announcement and this year's dividend
They cannot wait, os "normal companies", the 2021 or 2022, and keep the competencies they will need in the future
They need to cut cost now
I think not less than 8000
Layoffs has already been made public by Emerson on Feb 15th.
They announced plans to cut 2900 jobs in high cost countries and other 1000 jobs to be moved from high cost countries to best cost countries (which means to fire 1000 more people in high cost countries, so total 3900 people will lose their jobs in US and Europe).
This was announced before the explosion of the Covid-19 crisis, based and a flat revenue scenario, just to cut cost, increase margins and show to the financial community increased dividends, in order to protect the today's top management and the corporate organization (publicly considered by many investors as a no added value and unuseful overstructure)
From then till now Emerson stocks value dropped 30%, based an expected reduction of revenue and dividends
Question is not IF layoffs will happen (they are sure) but HOW MANY MORE layoffs there will be in order to keep dividends through a bloody cost reduction
Since Emerson strategy and decisions are driven by next quarterly financial announcement it is reasonable layoffs to take place by end of next quarter (June 30th)