Is that per year or over several years?
Because if the target is saving 2B from laying off, the math doesn’t seem to jive. Lets say avg employees salary+benefits etc is $300k/yr/person, which is a reasonably high est for avg, laying off 3k will only amount to 0.9B. How could they target to save 2B and said estimated 2-3k employees?
$3.5Bi
The full savings are not coming from layoffs.
I think they plan on closing most satellite offices in the US and internationally, eliminating all other subscriptions and platforms (for Oracle). When you consider the entire benefits package and accommodations, location, insurance, equipment, IT, and HR staffing are all significantly reduced. Also, streamlining most areas of operations across all networks will result in entire departments being wiped out. By mid-2026, they'll definitely reach their synergy target.
Your math is way off. It is more like 500k per employee, or maybe more. Besides benefits you gotta consider cost of doing business - licenses and seats everywhere i.e. Office 365 and Slack etc. Then all the support roles i.e. every N amount of employee require another HR person, IT person etc etc. Not to mention that all the “creativity” each employee generates also costs money. So your math is way off but in general you’re still right and they have been upfront about it. Not everything is gonna come out from payroll. There’s lots of cuts everywhere.
there is a reason they don't turn a profit