There are a number of older messages referencing Genpact. As many may now be aware there was a second wave planned impacting more senior level employees, there’s a third wave, and so on. It’s a total of a 5 year plan with continuously lower cost each year including future layoffs of those that moved to Genpact. Not sure how many waves have now been executed…I left CDK last year. I was in a position of knowledge of the long-term plan. The ultimate goal is virtually no US based customer support, virtual implementation, and significant reductions to IT and accounting, as well as smaller scale reductions in various SG&A functions. This could change dependent on the timing of the “re-IPO”. The whole purpose is to reduce expense as much as possible to increase the profitability multiplier for a one-time pay day on the IPO for the executive team. Post IPO there will likely be a new leadership team that needs to do some level of rebuilding. The situation will ultimately lead to excessive volume of work for those still employed and additional job loss and heartache across the organization. Even new hires are not safe. I reviewed plans to bring people into positions in order to keep the wheels on the bus with planned future rifs of those same employees. I would estimate the end state to be a 50% reduction in total US based employees versus the starting level prior to the Brookfield acquisition. For all active US based employees I would recommend pursuing external opportunities. Even if the position you hold is not selected for offshoring/elimination you will likely be left with a significant amount of extra work to cover the lower headcount.
I saw a recent posting on Linkedin of an employee celebrating their new position at CDK and thought about how they may find themselves unemployed in the near future and decided to post
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I am still employed by CDK and can vouch for the accuracy of the former executive level associate’s published information regarding CDK’s plan. I will be out of the mess asap hopefully of my own choosing, but you never know when you go to work at CDK someday, it may - surprise- be your last. Working hard there has zero meaning, and by the way there is rampant ageism thriving.
I don't see how great of an idea that is, after this first round with tier one customer support there struggling pretty hard still on handling basic tasks. Can imagine how downhill the next level support would be.
So nothing really has changed. Usual attrition, closing offices, double work-loads, and morale in the tank.
Reducing costs sounds good, but I would shy away from putting the fate of a company I owned into the hands of a third party. I’m sure everything seems great at first…but then Genpact starts wanting to reduce costs and your support and implementation quality suffers. Sure you could take your business elsewhere…but where are you going to find another sufficiently trained staff to assume this role? This has failed spectacularly for many businesses before. Of course if your plan is to get a huge payout and then let the new owners deal with the fallout…that might work.