Revenue flat. Seeking “outside help” to cut costs. What does that sound like to you?
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I always assumed that the Broadcom deal fell through because JG got pi---d off that they were discussing a deal.
It doesn't matter how SAS tries to dress up the numbers for a potential sale. All that will do is make the company look more attractive in a brochure.
Any investment bank brought in to do the due diligence for a purchase, will quickly uncover the truth of just how bad a state the company is in.
Why do you think the Broadcom deal fell through? I bet it had nothing to do with any concerns about Broadcom ki-ling the SAS culture (as JG would like people to think), and everything to do with Broadcom's bankers uncovering just how misaligned the founders expectations were, compared to the reality of the actual numbers after due diligence.
Whatever the number, a buyer’s only concern will be whether it slows the revenue decline.
“ 378? More like less than 10.”
You may have all missed the point. Throwing out bullsh-t numbers doesn’t really do any good. That is what the 378 was. A random bs number in response to a nonsense question. Just like your less than 10 is an anonymous bs answer.
Who cares?
378? More like less than 10.
"378 Does that help?"
How many more will it take to move the revenue needle?
“ How many sites have completely replaced V9 with Viya?”
"3 7 8 Does that help?"
I doubt that.
“Zero percent chance you are working an extra hour because you’re working from home. Zero.”
This unfounded claim, with ~0% data support and 100% certainty, says far more about you—none of it good—than it does about anyone else.
My personal observations which may or may not be representative of larger populations:
Slackers slack whether at home or in the office.
Workers work whether at home or in the office.
I totally believe that some people work more at home than in the office. And some people work less.
When I was commuting, I used to start 1 hour later than I do now. I take the same amount of time for lunch, and stop at the same time as before (sometimes later). That's the math. You are welcome to your opinion.
“ Zero percent chance you are working an extra hour because you’re working from home. Zero.”
You just lost any credibility speaking with certainty about something you have zero knowledge on.
“ How many sites have completely replaced V9 with Viya?”
- Does that help?
“Working from home enables me to contribute an additional hour of work each day. That productivity is lost if I start driving again.”
Zero percent chance you are working an extra hour because you’re working from home. Zero.
How many sites have completely replaced V9 with Viya?
DrG owns 1/3 of SAS so if he wants to keep Viya going it's his prerogative.
MrsG owns 1/3 of SAS so if she wants to keep Art going it's her prerogative.
JS owns 1/3 of SAS so if he wants to keep JMP going it's his prerogative.
The rest at SAS are just hired help and cannot make decisions despite best intentions.
Likely there will be bigger layoffs ahead. If for no other reason, the pace of change typically hastens the longer a company remains unsold.
Additionally, some departments have not had any headcount cuts. It might not be realistic to expect that trend to continue.
Layoffs will probably follow the same cycle as last year. They started shortly after kickoff with a big one closer to beginning of March and then trickles throughout the year each quarter. I expect lots of reorg announcements when that happens.
“But wait! According to JG, SAS has never had a layoff!”
But wait! According to some anonymous person on thelayoff.com…
But wait! According to JG, SAS has never had a layoff!
“Those months might have already passed!”
I would expect layoffs just before the mid-March bonuses.
@qy+1jj760v28
"Based on my limited experience, it will be months before anything happens."
I do not disagree with "months". What we do not know is how long these consultants have already been engaged. Those months might have already passed!
the owners have funded the park around the NC Art Museum. That park is not profitable. Cut funding
The huge cost of developing Viya, it’s almost certainly less profitable than JMP. There is no proof either are profitable. Cut both.
Expect the transition from philanthropy to profitability to be a rough ride.
You may feel that owners’ personal interests should be profitable. But it’s a free market, and it’s their money. In addition to the SAS Art Department, the owners have funded the park around the NC Art Museum. That park is not profitable, of course. But you’re entitled to feel that it should be.
Many parts of SAS are unprofitable, or barely profitable. For example, considering the huge cost of developing Viya, it’s almost certainly less profitable than JMP. It will be interesting to see what a consultant suggests doing about that.
Just because JMP has had no layoffs does not mean it is profitable.
No way the Art Department is profitable and they have suffered no layoffs
Both are founder's pets. Pets are betterprotected.
The Art Department and JMP are two completely different cases.
A consultant might recommend cutting the Art Department, but Art is a personal interest of the CEO and his wife. This is free-market capitalism: they’re allowed to fund their personal interests, and if you don’t like it, you’re allowed to leave.
Public estimates are that about 500 JMP employees generate at least $100 million ARR — or about $200K per employee. That’s not hugely profitable, but no great loss either. No consultant will recommend cutting JMP, when so many SAS products bring in less.
When layoffs happen in either JMP or the Art Department you know things are beyond bad...
going on at my current company as well. consultant brought in for "efficiency" etc etc blah blah blah. we all know, and we are certainly trying to be "efficient" and get work done and get "credit" but it's just a colossal waste of everyone's time and energy. the people benefiting are the overpaid executives in charge of the stupidity.
"One way to cut employees without having to lay some of them off is to tell them the truth about the company situation and what the future holds."
"That would be a smart move because some would quit. Quitting is the most inexpensive way to reduce headcount."
Fixed it for you!
“Anyone on here know when the "outside help" arrives? Thinking things will start being different soon after that happens.”
Based on my limited experience, it will be months before anything happens.
I once worked at a startup with about eighty people. One day our CEO introduced a consultant. It was much like the scene in that movie “Office Space”.
The consultant told us that his expertise was in “Operations”. We had no idea what that meant. We asked each other, "What does this guy actually do?" We were young.
The consultant studied our little company for three or four months. Then he made his recommendations, and left.
About ten of us got laid off. My friend said, “Now we know what he does. He’s the Ax Man!”
It takes time for a consultant to evaluate a company. So you’ll see no effect for a while.
But these consultants are hired to cut costs, and the biggest costs are salaries. Take seriously your CEO’s warning.
I could see the gym and HCC being outsourced like the daycare was. At other companies in ther area that offer these services, they are outsourced. There was also a charge to use the gym - like $6/FTE or $11/contractor
One way to cut employees without having to lay some of them off is to make them return to the office in person full time 5 days a week"
That would be a smart move because some would quit. Quitting is the most inexpensive way to reduce headcount.
Calling employees back to 5 days/week at campus does not guarantee them residing in a certain building or even having a given team clustered in contiguous offices. From a cost cutting point of view it makes sense to first fill the most energy efficient buildings to capacity. Also, maximize the number of vacant mothballed buildings.
Gym and HCC open 3 days/week, 12hr days. Close all cafes and lay off cafe staff. Plenty of folks in food truck biz to service the SAS Cary campus.
Might sound brutal to some here. but if you know those in the interim CEO business, this is a very normal examples of operational business acumen to save an ailing company.
...One way to cut employees without having to lay some of them off is to make them return to the office in person full time 5 days a week and some people will quit on their own, like what the current Federal government is doing and what some other companies already did. Devious but clever plan!
That plan comes with two costs that I see:
- - The mothballed buildings will need to be re-commissioned, and the utility costs will resume. Those returning people need offices. And offices will need to be moved again or teams are going to be spread out all over campus, so there is that additional office cost. Further, additional cafe staff will need to be hired to absorb the influx.
- - People who commute have less time to work. Working from home enables me to contribute an additional hour of work each day. That productivity is lost if I start driving again.
Yes, you are right that some people will choose to quit. But balanced against the above costs, expenses might rise instead of going down.
Did they then turn around and hire 5 more interns that summer?
Nothing good happens if company (revenue) does not grow. It's even worse when the revenue does not grow for many years. Something has to give so there will be cuts.
Be prepared yourself. One way to cut employees without having to lay some of them off is to make them return to the office in person full time 5 days a week and some people will quit on their own, like what the current Federal government is doing and what some other companies already did. Devious but clever plan!
VRBP also gives employees younger than 65 some healthcare subsidy monthly to bridge until 65 (at least back in 2021). Layoff does not provide that.
"Think about that for a minute."
No need to think about it. The manager said there was no budget for raises or bonus for the department due to company not growing. I wasn't the only one that did not get it, several others in the department did not get it either. Did the manager lie or their hands were tied? Who knows. I left for greener pasture and be better off.
Anyone on here know when the "outside help" arrives? Thinking things will start being
different soon after that happens.
"Outside help" may be coming in to review the GAAP books and make recommendations - or an offer...
Voluntary Retirement targets older employees, who mostly qualify for full severance.
Layoffs target employees of all ages, so their severance costs less.
SAS has done two VRBPs, so does not need consultants for that.