Apparently, the response to the offer exceeded all expectations, but, as someone mentioned, layoffs are inevitable.
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There will be layoffs in addition the people that have received the offer. The managers have a list of these people already, which was finalized last week. Once the number of people that have accepted the offer is known, the additional layoffs will occur.
Additionally, they will layoff some of the people that didn't accept the offer. Management was told that they cannot encourage their people to take the offer, even if they know that employee is on the list to be laid off. So they will miss out on the offer that was originally presented to them (5 months of pay, 18 months of subsidized COBRA, 80% of the bonus in March, stock if they have any, etc.)
Voluntary offers are likely not enough to reduce enough costs. There will be layoffs either way. Those who didn't take the offer probably will be laid off anyways including extra people who did not receive the early retire package.
Very likely entire teams will be cut or outsourced to India. This happens every layoff.
Why all this negative thoughts. We are in the 4-th year of the successful transformation. Sell what is on the truck or sell the truck
After a townhall last month SM tasked SVP’s to find 10% in savings. It sounds not a whole lot, but given inefficient and the fact that TD has been quietly laying off for about 2-3 years (about twice a year), this one will hurt. This will also test SM, I.e. whether he genuinely has TD future in mind, or just bllshttibg us... example... someone said DH salary is 2.5m... will SM save DH job or 25 others’? Hasn’t he (among other things) meant some SVP’s remuneration when he wrote that TD behaves like it is a 20B dollar company?
After a townhall last month SM tasked SVP’s to find 10% in savings. It sounds not a whole lot, but given inefficient and the fact that TD has been quietly laying off for about 2-3 years (about twice a year), this one will hurt. This will also test SM, I.e. whether he genuinely has TD future in mind, or just bllshttibg us... example... someone said DH salary is 2.5m... will SM save DH job or 25 others’? Hasn’t he (among other things) meant some SVP’s remuneration when he wrote that TD behaves like it is a 20B dollar company?
They have a number in mind for cost cutting through voluntary and involuntary separations. They haven't disclosed what that number is. Let's say it is $200m. That means the target number has to be near 1000 people globally or more. If only 300 take the offer, another 700 will be out the door involuntarily (layoff). I DO NOT KNOW THE REAL NUMBER. THIS IS ONLY AN ILLUSTRATION
It's not rocket science is it now!
They will double it and offer to everyone :)
There are going to be further layoffs either way. More people taking the offer means fewer need to be included that aren’t “voluntary”.
It is sounding like there are going to be entire projects cut, so I don’t think that could be mitigated even if everyone offered takes the “early retirement”.
Well, according to Wikipedia:
"Runners are those who refuse to report to a Sleepshop and attempt to avoid their fate by escaping to Sanctuary—a place where they can live freely in defiance of society's dictates."
https://en.wikipedia.org/wiki/Logan%27s_Run
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More importantly, what happens if too many want the offer...?
Layoffs. No question. So you're on the right site.
I'm assuming layoffs, I'm just wondering if they'll target everybody or just those who received the offer in the first place.