I wonder how much money the company will save by this round ? You can easily bust the savings by wrong decisions on 1-2 projects due to loss of the key skills. I hope the bang is worth the buck.
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Absolutely agree more is coming. Another round in spring and then a third in fall At least.
Former COP. Now at a consulting shop. Did not advise on the COP reorg, but have done similar reorgs elsewhere.
It's difficult to characterize "how overstaffed" an organization is until you start cutting (although benchmarking gives some signal). Typical approach is to use benchmarking to establish initial scope, but ultimate goal is to keep cutting until things start to break.
That feedback loop provides a signal for what work actually matters and what workflows can remain broken. Similarly, it provides a signal for which groups need to stop cutting (and at times add back a few people) vs. which groups should be cut further.
A large layoff cannot and typically is not done in a single tranche. If they're publicizing 30% functional cut in November, chances are they're contemplating further reductions over the coming 2-3 years. Be ready...
And as an aside, you would be surprised how few people are required to run an organization well. We've seen shops run better with 1/4 the staffing ratios vs. that of bureaucratic peers.
Much of the 40% over staffing is associated with those individuals in roles which have no visible connection to profitability. The impact of these roles, initiatives and bureaucracy is huge. Think of roles and groups containing descriptors such as Strategic, Sustainable, Excellence, Low Carbon, Relations, Recruiting, Global, Integrity. All of these groups drive superfluous VCIP goals which in turn take the organization’s focus off of profitability.
knowing us, we’ll do all this work and costs will go up.
Yalls land department is way overstaffed and needs cuts.
@an just curious where you get that we're 40% overstaffed?
Bottom line is we’re overstaffed by 40%. Still only reducing 25%. We may be incompetent in selecting and implementing projects but they have an overall return that is acceptable.
@OP whatever it takes to get Willow built…