Reuters - CDW on Wednesday beat Wall Street estimates for the fourth quarter, helped by growing demand for its IT solutions, as small- and medium-sized businesses continue to spend on the company's services.
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Top talent is always replaced by cheaper and younger talent that is making less and has potential. They can save money and mentor a younger person with a lesser salary and compensation program and forward the old customers for them when the higher performer is released. It is a proven method at any large company. Even in professional sports. The immediate impact to the bottom line on their savings help buy more time to right the ship. It is corporate America 101. Where companies get in trouble is when they tend to target older coworkers or women and minorities and then it is a different ball game. But yes, we let go of many good performers with the hopes the newer talent can take over their accounts and grow the business again and save on high salaries and comp programs. I lost a friend that ran circles around me and was asked to teach me the ropes and how he managed his accounts before we knew anything about the layoffs. I now see it was done to prepare for his release. He is still seeking employment and his wife left him because of the stress the job loss cost the family. He is in the running for another job with another company but it is not guaranteed and it is in another state where he won't be able to see his son regularly. We are and will remain close friends until the end. That is the reality and I am sure there are other stories out there of the hurt this caused.
Sorry, I don't buy it. The statement of "I was asked to layoff some of my best performing team members because they were highly compensated" just does not align to anything and anybody I know at CDW. I have seen people laid off due to low performance, due to low productivity, and due to attitude. Not due to making too much money.
Does anybody find it strange that nobody posts "I was performing poorly for months and got laid off" or "I was fighting with my boss constantly and I got laid off" or "I was missing my number but my goals were unfair and I was laid off". People don't post that stuff. They instead say "I was there for 10 years and they laid me off", "my boss was an id--t and he laid me off", "I was performing better than ever and I was laid off".
Believe what you want. The reality is that CDW as a company is trying to perform for their shareholders, for their customers, and for their Coworkers. Cutting top talent for no reason besides that they are paid well does not align with any of that.
- The below poster is most likely an insider trying to motivate the masses but the plan calls for dismissals regardless as there are opportunities to reduce costs and increase margins and yes, high performers were and will be let go after the second quarter. I was asked to layoff some of my best performing team members because they were highly compensated. Don't be fooled. Those of you in positions of authority that had to do what I did know the truth and I still feel like someone kicked me in the gut over it.-
^^This guy gets it^^
The below poster is most likely an insider trying to motivate the masses but the plan calls for dismissals regardless as there are opportunities to reduce costs and increase margins and yes, high performers were and will be let go after the second quarter. I was asked to layoff some of my best performing team members because they were highly compensated. Don't be fooled. Those of you in positions of authority that had to do what I did know the truth and I still feel like someone kicked me in the gut over it.
1 good quarter is a good start. We need to continue to perform. And yes if we perform that just means "no mass, planned layoffs". CDW will always evaluate individuals and people who consistently don't perform they could be let go. And btw - people who fight with their boss openly are always in danger as is the case in any company.
I don't buy that compensation is tied to any of this. I saw plenty of Coworkers I knew were on write ups and were being told by their boss there are issues that claim they were then "blind sided" when let go and that it must be due to their age or they make too much money. Nobody has said "I knew I was su-king at my job and saw this layoff coming".
Everyone thought we would have a better quarter. Especially saving money from the lay offs. But this does not address all of the issues we learned on this site. We remain bad at the core.
The company hit 1 quarter after 8 straight misses. CDW still underperformed FY2024. So it doesn’t mean leadership won’t look at individual business units that aren’t performing to see where they can make cuts. Proceed with caution.
Agreed - this is good news for CDW and for all our Coworkers. If we grow and perform, no need for planned, mass layoffs.
https://www.businesswire.com/news/home/20250205298946/en/CDW-Reports-Fourth-Quarter-and-Full-Year-2024-Earnings