The explanation for the cuts in my opinion can only be the greed of the leadership.
Is there any justification at all for these cuts because I don't see it?
11 replies (most recent on top)
Well, Red Hat is a publicly traded company, so the Execs only panhandle to major stockholders. If you view this any differently, you need to take the rosy glasses off. There are two realities to this: increase stock price and decrease expenses. The only way to increase the stock price is more sales and less cost. Since they cannot control #1, #2 is the only answer. When you look at the expenses, there are several things that can be hit, but only 1 that makes a difference: people. You have the sunk cost expenses that cannot be reduced (amortized expenses, building and facilities, etc). All that is gone before anything. Then it comes down to the other 70% of expenses. You can find a single nickel or dime here and there, but they are looking for $100 bills. When that is the case, the only way to find it is in headcount. That my friend is why layoffs are the only solution to a failed leadership and Exec team.
@5auc+1mj8wHpl I don't even know who's worse - those who have discovered that they're nothing but disposable resources to the VPs (yep! the rick fu--s don't care about you, your wellbeing or, shocker, mental health!) or the bootlickers applauding layoffs and defending VPs' lies
How did they stay isolated from the real world for so long? Several joined Red Hat directly from SAS, that's how!
It's fun watching the Red Hat workers get educated in how the real world works. How did you guys stay isolated in your little fantasy world so long? Do you not read the news about what happens every day to workers at other companies? The reactions are almost comical. "How dare they put money above people? How can they think profits are more important than their employees having jobs?? How can they be so heartless???" Welcome to reality, kiddos. Enjoy the ride.
You do realize you work for a publicly traded company? The only people the Execs and Board report to are the main shareholders and nothing else. If you don't have a Golden Parachute contract, the Execs do not care 1 second about you. They may act like it in an open forum, but behind those Exec doors they do not care.
I don't fully blame leadership for layoffs, these things DO happen. I blame the execution. Terrible communication. Fake sympathy. Request for nobody to talk about it. Some of our teams lost ~50% of their staff.
Your Executives sold you out first Thank Jimbo next time you see him Oh wait a minute he probably lives on his own private island now So good luck with that
IBM stock has been dogsht for years. How does such a giant company around for a century have such a pathetic price?
If your job is cut, it's nothing personal. It just means you aren't in the right club. Move on and try to make better-informed career decisions in the future.
What the last poster said plus this kindergarden explanation.
Need cash. IBM is a dividend company so cash flow is important as investors expect dividends. Inability to pay dividends would cause stock price to go down which would cause both IBM and RH management to be laid off. (Not financial advice). If they want to do acquisitions, they also need cash. Since the Fed raised rates, basically everyone needs cash right now-- IBM, customers, laid off employees. If Red Hat can't get enough cash by getting more customers, they need to get it from employees to give to IBM to give to shareholders. And the piper comes knocking twice a year.
The Fed ended the free money gravy train. That means businesses don't have extremely low-cost debt for technology investments. Multiple companies are cutting expenditures (employees), to offset future lower revenues and to service debt that's now more expensive.
But then again, I made up the paragraph above, so any layoff decisions could be due to a combination of factors.