https://thehustle.co/originals/why-layoffs-dont-work
11 replies (most recent on top)
MF was not a bargain nor was it a smart decision. Mark just wanted to showcase he's a big shot and he failed miserably, possibly risking the entire company in the process. But that's okay, because Mark has an army of dispensable workers he can just fire to make up the loss. He will blame it on you not being in the office 10 times a week.
What teams were affected? US? MF or OT heritage? Any mgmt?
CEO's don't care
They're running out of people to fire.
Which BUs and teams had layoffs?
More layoffs today, ugh
Quick and dirty back of the envelope analysis:
Between 2021 and 2024, revenue went from $3.4B to $5.8B - up 71%
Expenses went from $741M to $887M.
Not too bad?
R&D and G&A expenses doubled while revenue did not.
Operating margin went from 22% to 15%.
EBITDA had a respectable 50% increase but not 71%
The promised efficiencies and synergies of the acquisition did not materialize.
You can see it in the stock price.
And so .... another round of layoffs!
The blowhard said he was going to double the size of the company. MF fit the bill to accomplish his id--tic goal and the board, having less brain matter than MB didn't argue.
Success can really mess with a person’s head, and our CEO is a textbook case. The company’s past wins? Honestly, a lot of it came down to luck. At its core, the original product was just enterprise document management with some cloud features tacked on—nothing groundbreaking. As long as it worked, customers weren’t going anywhere. And this CEO? He kept snapping up similar products, basically herding more sheep to shear. If he’d just stuck to his lane in document management and played it safe, he wouldn’t be in this mess today.
The MF acquisition was his attempt to recreate that old winning formula. MF had a ton of on-premise clients and steady cash flow—get those folks onto the cloud, and it could’ve been a big win. But MF’s business didn’t mesh with OT’s at all. MF was up against brutal market competition, needing constant investment and innovation—exactly the opposite of the CEO’s cost-cutting playbook. Some folks say MF’s tech is outdated, but take a look at Ollie or Core Share; they’re all rocking that ‘90s vibe. It all boils down to hubris, a shaky grasp of his own company’s tech chops, overconfidence, misjudgments, and jumping into a game he didn’t understand. Mark, it’s time to go.
Layoffs, again?
Curious the reason OT purchases MF? Is it because it was a bargain? Seriously asking, what is the benefit that was presented to shareholders and stakeholders?