What do we think here? 2 rounds of layoffs in a row is usually brutal, could they be sc-mmy enough to do a 3rd?
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A key line...form earnings.
With the 14% reduction started in 2022 we anticipate being able to run the company at "about" this level headcount without further reductions going forward. About that sure is a broad maybe statement if I have ever heard one. That doesn't make me feel happy.
So the BB workforce survives the rule of 40 day for now.
However, lets also keep in mind that they also said on this call the the 14% reduction was fully planned in Q3 of 2022. MG back when the RIF happened in the end of 2022 and said we don't anticipate any further reductions for the foreseeable future.
Clearly someone was lying then which means we cannot trust what they are saying now. They either knew they weren't done and said they were or changed their minds.
He-l on the last earning call they said sales and direct to market teams were not affected at all by RIF its in the transcript. Now on this call they answer a question and say well they were minimally affected. Which is it not affected or minimally affected. They knew on the last call that the RIF was in fact affecting those teams.
These guys just lie like a $20 carpet on a college dorm floor.
Stay strong folks, breathe for today but do not trust what this company leadership says. They are painting a rosy picture to move the stock price up to line their pockets.
Watch the insider trading that is coming.
Love the comment by Mike G today on the investor call to “about maintain current headcount.”
Thank you for sharing that. Hope you were able to quickly find something else.
I was laid off in last round in mid Feb. It was 2 weeks notice.
Last official day was March 1st so got 1 day pay in March, then the equivalent of 3 months severance minus all appropriate taxes in a lump sum payment. However no lump payment until severance agreement was signed.
Cobra eligibility began in April as med was covered through March 31st.
Hope this helps.
I read somewhere they said 2 months? Not sure if that starts at the end of the month (for example when they laid off feb 13th, were the laid off folks given until the end of the month until severance kicked in so they technically almost got 3 months? would be nice if so, especially with May 3rd being the beginning of the month, keep us on payroll until June 1st then + 2 months severance.
What kind of severance have they been offering during the last 2 layoffs?
Let's not forget this ELT was and still is anti remote work.
The only reason they accept remote work is they realized they could shrink the Charleston footprint, close offices around the world, ditch we work space and that helped accelerate their rule of 40 goals.
For years if you wanted to be upper level management they expected you live in Charleston.
If they thought brining folks back to the office would help the bottom line your remote work bubble would be burst. These are the same ELT that railed against remote work for years.
Remote only happened to help thier rule of 40 goals by taking overhead levels down.
Also keep in mind many companies are in fact going back to in person work. While not everyone may not like it in person work is perfectly fine for many.
I prefer better management over remote any day.
I would rather have to come into an actual office for work than be remote and have quarterly layoff worries
I'll take the deal with the devil I don't know in ClearLake to get out from under the devil I do know in BB leadership any day of the week.
I'll take anti-remote over anti-innovation, anti-growth and pro-layoff.
Look at the entirety of the ClearLake portfolio.
They are not really all that anti remote in fact they have companies like digicert and constant contact that are geared to helping remote work be successes.
Pull up the their own 2022 ClearLake ESG report and you will find they are very remote friendly.
I would not worry about ClearLake and being a remote employee.
I would bet they actually sell off the BB headquarters and make the company fully remote.
Just my 2 cents after reading the entire ESG and getting a better understanding of their portfolio of companies.
Careful with asking for that, ClearLake could legit come in and instill leadership that are anti-remote work.
Yes please, can ClearLake get this done with and replace the sh-t a-s fu---d up ELT with a proper management team that know what they are doing.
If that ELT has president's club in Monte Carlo in 2024 the employees should revolt.
i noticed my director has been oddly quiet on slack the past couple of weeks wonder if he knows and feels bad.
There are plenty of rumors floating out there about Tuesday or Wednesday and more cuts. ELT is desperate for revenue. With regards to the Bahamas, that trip happened and next year is slated for Monte Carlo. A buyout by Clearlake to infuse capital would be a breath of fresh air, assuming it comes with the removal of the CSuite.
this sucks, ive been here a year now and I honestly love working here. The remote/flexability is so good that I don't care to work odd hours or put in 10+ hour days. Bummed out, never had such a good opportunity. Even if the pay isnt the best, my mental health and life happiness is high.
I have worked there long enough to know that nothing at BB is done in a way that makes sense, and the ELT is as opaque as it gets.
As a point of information. I was laid off in this last round. My final day was March 1st 2023.
However I knew about the RIF the day before the earnings call and many others received email appointments with HR during the earnings call.
It was not 2 weeks after, that is incorrect information.
That said I see it far more likely there would be another RIF Q3 or Q4 too many people are still too livid that I know still work there. They cannot afford to lower morale even more or they will lose many to other companies on their own.
But this is BB so who knows they may do another surprise one now to meet numbers. They may hire a bunch of people. BB is so upside down all they care about is their e level pockets.
And yes previous poster is correct it was president's club for ELT and high sales performers. In Bahamas and rumor mill from folks still at BB is between 4-5 million cost but again that's a rumor. However if true 4-5 million is about 22 head count at 150k salary plus bonus package. So hey pay for a party or retain employees guess we know what they prefer.
I feel like some managers don't know anything and others a bit higher up do know about an inbound headcount reduction and restructuring.
Either way morale sucks we will find out soon enough and in the meantime I am interviewing to beat them to the cutting block.
The last round of layoffs was not 2 weeks after the earnings call it was in fact announced during the actual earnings call with wall street.
FYI I'm a manager at BB and managers do NOT know anything at this point. The last two layoffs were the week after the earnings calls, so if it does happen in May then it'll be the 2nd week. Morale is already at rock-bottom...not sure it could go any lower.
Do they not see that this rule of 40 nonsense is pretty much unattainable? we can get close to it, at best, but are they really that stupid/naive to think that we can actually hit that number magically, without mass laying off? If we keep laying off to hit that number, there will be no employees left to keep the company even going. This makes no sense.
I think they're referring to president's club which is an incentive for the top sales people and ELT. It was in the Bahamas this year.
What do you mean c-suite partying in the Bahamas? Why were they in the Bahamas?
The round 2 cuts for the 14% total at last earnings call are not having the desired effect. Their may not be a May 2023 cut but I would anticipate another cut this year for sure. The street expects a beat on earnings May 3rd when you read yahoo finance and zacks. An earnings beat is to be expected as they parlay the layoff savings into higher year over year numbers. However when the year over year is propped up by layoffs and not actual organic growth through new products that bring in new revenue another round of layoffs will be required to continue to prop up the year over year numbers for wall street investors.
There are far too many other companies in the non profit software space now. They cannot innovate like they use to when they were they were the only game in town. So this leads to the near constant drone of layoffs to meet numbers.
They are behind on their rule of 40 goals that the c suite has said in previous earning calls they plan to accelerate in 2023. Without massive natural growth (not happening) or another major acquisition (not likely) the only way to accomplish an accelerated rule of 40 timeline is to cut more costs (layoffs small amount in June 2022, major in November 2022, major in March 2023). The single largest cost to most any company is headcount. So no this will not be dead, end of life unprofitable products. It will be across the board once again to meet rule of 40 goals. All while the c suite partied it up in the Bahamas while Clearlake circled the company for takeover at $71.00 per share. Maybe cutting out the multi million dollar party could save some folks jobs.
I don’t doubt your claim, but it doesn’t really make any sense to me. Why would they not save everyone trouble and just cut the rest in round 2? Is this for all product lines, or is this for dead/not profitable products?
Managers have been given a number to hit all along. Some just did it faster than others this round will be a whole new round. Managers will have to decide on cutting highest base earners( which they've historically done ) or more of the lower base earners.
Can you elaborate more on this next round? Managers get to pick? Who do they get to choose, anyone they desire? What’s the number? All products, or just the ones not doing too well?
WTF! Seriously? Managers already know?
Of course there is another round of layoffs coming. The only difference is managers are getting some ability to pick from their teams unlike last time!
Management on many teams are having conversations and making comments about the need to make drastic changes to the staff if numbers are not met by EOM. Earlier in the month there were subtle conversations encouraging people make the right decision for themselves and their family regarding their employment. I feel like it's obvious there will be more layoffs on May 3rd. I'm counting the days with dread in my stomach
3 rounds of layoffs in a row would annihilate the very little morale left, sheesh.
They are 100% sc-mmy enough. I see the stock price is dropping again after the board's latest pump-and-dump scheme with Clearlake.
They mention Meta and Twitter as examples every time they do it and Facebook are planning another wave already so it's odds-on.