Private equity companies like JRC have competing paths to achieving their profit objectives; operate the company or sell off the company's parts. Operating the company appears to be outside their core competency. Does any of the restructuring suggest how they'll break down this corpse of a company and sell off the pieces?
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Dear apologist-
You offer that they're adding contracts. You lack specificity on what kind of contracts. Major universities or community colleges? Do the contracts align with existing supply chains? Do they align with course materials or are they soft goods only? Are they contracted by the university, or are they like Cal and simply another university themed retailer in the town of the university?
If they're able to reduce labor without impacting revenue, isn't that really right sizing labor? You don't claim that. You claim that they're reducing costs by firing experienced workers? Are they being replaced? How much does the on boarding cost? How much in sales are lost due to inadequately stocked or manned stores?
Your post sounds a little like Kevin Bacon in Animal House (filmed in Eugene, OR around UO which is not and has never been a follett store). You're pinned against the wall and you're screaming all is well.
They are reducing expenses and increasing profits on the sales they do have.
How do you increase profits on sales you lose by not having enough/no/untrained staff?
Their logic is breathtaking!
Earning every penny of their exorbitant salaries paid in the Ivory Tower!
No, of course you do not expand sales by depleting staff. They are reducing expenses and increasing profits on the sales they do have.
Spoken like a true HR trouble sho-ter. You do not expand sales by depleting staff, reducing customer service, and overworking already overworked management.
Considering they're still acquiring contracts, opening stores, purchasing intellectual property, and spending on assets I don't see any indication yet they're looking to shut anything down, even if they're looking to flip and resell at a profit.
Reducing labor costs doesn't imply shutdown or dismantling. Ceasing to expand, purchase, order inventory would be a stronger indicator.
HR we---e looking for answers to put in suggestion box at the water cooler?