I heard there were some layoffs this past week of June13th on the portfolio brand teams. Were there more in other departments? For those of us left - how long are we really safe even if we survived the last two big rounds of layoffs?
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@NotEek ...like who? Most folks in are still showing as being there in the system. I know a few who SHOULD have left yeaarrrsss ago!
A few HR people and Accounting people have resigned or left as well as 2 senior mgrs we personally know in our department.
@eek like who?
When will you all at that place wise up and realize that companies are not obligated by law or otherwise to pay severance or offer "packages". Sad to say that is the "typical" thinking of a person that has only worked at Fossil or it's been their first "real" job. Your best option is to find something else while/if you can.
@Eek Not surprised! Probably part of Fossil’s plan to run them off saving them having to pay a severance to the rest of the crew left!
Get out of fossil as fast as you can. Lots of tenured people are jumping ship
During recessionary events capital intensive/fixed cost industries (oil/exploration/auto) fare the worst with top bankruptcy filings in those industries and consumer nearly at the top. Retailers this time around are predominating bankruptcies because of the fixed cost of lease obligations during a low traffic environment and frictionless shopping over digital. Fossil has been downgraded to B2 which carries a moderately high percentage of default and if It persists only increases the probability of default every year. Their earnings are shrinking and pressuring debt and interest payments which caused this decline.
It’s a shrinking company that’s juicing its employees and it shows in this forum. It’s culture is based on favoritism/nepotism and it shows in this forum. Financially bankrupt, ?. Morally bankrupt, I would say, yeah. It’s this quality that will do anybody in. It looks as if they’ve already lost employee and investor trust. Managerial and Board stakeholders, and Ceo seem to be ok with drawn out decline, as they refuse to act on behalf of employees.
Fossil would be have been an acquisition target if they understood what their business was and reinvented ten years ago when it had the cash to do it and was a credit worthy listing on S&P 500. It’s growth years are in the past, and what’s worse is that the people who stay are the same ones who wrought this decline.
SOULESS!!! Fossil started losing its soul ever since we moved into the new building and leadership came from JCPenny’s rejects! It’s sad to see what Fossil has become from what it used to be. Even if it survives Covid It doesn’t look like it will ever get it’s soul back!!!
@ GladImGone...I too am glad to be away from that toxic work environment where you have to go along to get along. Those that are left....how does it feel to ACTUALLY do your job and then some for a change and not take sixteen 30 minute breaks a day is my query? My hope is that Fossil as a company is able to bounce back.
Upper management has always protected themselves and their “favorites”. Nepotism reigns alive and well and always has. If you’re one of the “chosen”, you can get away with doing little to no work, even more so now. There will be no corporate office left at the rate they’re going. I’m frankly surprised anyone is still tolerating this treatment.
Fossil management (Directors, VP's...) are all about making sure they keep their yearly bonuses all the while gathering "teams" together and delivering the message last year of no merit increases and/or bonuses to those of us that do the actual day to day...year end and year out. Non-transparent indeed when it comes to protecting their pockets and not their "teams".
Thank you for the detailed insight below. Although it’s discouraging, it is refreshing to hear an insightful perspective vs the non-transparent rah rah’s of management! Do you see the company heading toward bankruptcy if the company is getting more and more undesirable to buy?
Risk equity is one of the sectors that has been relatively thriving during this time because of the fed actions to prop up corporate credit with buybacks. Private equity deals are moving forward despite the downturn because of their large cash holdings. If the company cannot find a deal in this market I doubt they will find a better opportunity considering what its trading at. The brand name is irrelevant in the market anymore it’s capabilities could be traded against but it unloaded its engineering
/design talent so that leaves few assets to extract value from. It has several factory/equipment assets but are long lived and in need of update. No Intellectual Property to speak of so that leaves it with its brand name which is out of favor for lack of innovation and bad management. It really only has licensing agreements which pending expiration or each brands interest in continuing in the watch market could deteriorate return potential.
Relic is gone entirely. The entire brand was dropped.
You left out Relic! Relic design was outsourced to China too!
All Outlet design categories (watches, jewelry, and leathers) was outsourced to be designed by a team in China in February so outsourcing has already started in the Richardson headquarters!!!
Richardson office next? Outsourced possibly!
How big was the Canada office? It’s a slow death for the company!!!
RIP!
Canada office is no more. 🇨🇦
“Safe”? No such thing. This isn’t a game of freeze tag and those that got caught up in the latest lay-off didn’t happen to make it to base in time. Companies are supposed to make money. Fossil is not. Cuts are happening in as meaningful a way (to the bottom line) as possible without reaching the threshold to trigger WARN act. If one round of cuts doesn’t provide some cushion and assuage Street and investor concerns (aka buy some time), there will be more.
My bet is the company will be acquired or rescued by some private investor group. I think Greg’s latest transactions may be a hint of something like this on the horizon. “Minimally viable organization”
They would sell the company before “shutting down” entirely but you should try to leave before that transition happens.
Exit strategy mode? Why would you say so?
I personally expect more layoffs And pulling some jobs from regions to dallas but I don’t think that the company will cease to exist.
The company is in an exit strategy mode. But don’t expect a severance when they shut down entirely. Everyone that got laid off is lucky. There is no safe.
Yes, I would expect more layoffs.
Did you actually think they were done? More of a statement than a question.