In case you missed it, CommScope announced on yesterday’s earnings call that there will be another $250m saved in headcount reduction which is 1,500-,2,000 employees. These reductions are for what they are calling Core CommScope (nonHN BUs). So this doesn’t mean HN is safe it just means those synergies will be independent of and in addition to the $250M.
Great for long term shareholder strategy but as an employee you have to pay attention to what they are telling the street.
I would assume CommScope is going lean, reducing liabilities and building value to generate M&A interest. It’s a smart play (and as much as none of us like it, the CEO and his team is getting paid to create shareholder value and he’s doing the only thing he can and investors will be well rewarded) because no matter what you think of the CSuite there aren’t many options left to build value. An outsider executive was brought in because this new team had no personal relationships with anyone here and could make the difficult decisions (although I think they need to start taking a look at some of their bloated non finance, non-BU cost (not profit) centers where VPs are creating negative value, holding up revenue generating opportunities, entering into costly and expensive agreements that return negative value but pitching them as “wins” and are sucking down big pay checks self promoting and scheming solely for self gain.
So you have read this, you know this, plan accordingly. If you’re close to retirement and can afford to roll the dice on getting laid off and ride it out (and you get equity) then there could be some big stock payoff upside. If you can’t roll the dice or are nervous that you won’t find a new job before the severance package runs out, then look, get some irons in the fire. Dust off that resume and start talking to your network, be prepared and give yourself options, doesn’t mean you have to take it if you get an offer.
Some VPs (and I know many more good ones then the handful of less then adequate underperformers) know they are over paid and don’t have to do any work here or even read their email?! You can tell because they never respond. Forget to show up to your weekly cadence meetings, don’t do any work and gaslight you when you do excellent work in order to make you feel inferior and justify their bloated compensation without having to work even a little. Those VPs will be the ones having a difficult time replacing their cushy job with no responsibility other then to self promote. You won’t have a difficulty time, you will be able to find a better job, better work life balance and better compensation (even if you are in your fifties, the market is flush with opportunity at the moment).
Be prepared and you will be fine! Don’t let this news get you down, use it as a tool, as an asset to flip this into an opportunity.