Rumors are intensifying about layoffs before the end of the month. Any chance somebody here knows more about it?
4 replies (most recent on top)
I think that layoffs are not off the table in the near future. The company has to invest in major security infrastructure upgrades dating back to the data breach. While teams are already running slim there will in my opinion be a round of consolidation. This round will thin teams even more by combining more units in turn making the work load of those teams even more unmanageable. That way they can invest and beef up security infrastructure and personnel in that department without actually adding to the head count because the head count is one of the if not the largest expense. The unfortunate earnings miss while looking small on scale is a major headache to a leadership only holding onto their positions by promising a robust stock price to investors as they turned down a fair market offer from Clearlake. So now with the stock dropping as it is they will need to cut head count to satisfy promises made to investors on robust returns and satisfy regulators over their lax security practices in the past.
So as they work out a plan to combine teams and reorg again to afford the security practices and personnel that should have already been in place at the worlds largest software provider to the non profit space there will no doubt be lots of employees who lose their job in the reorg shuffle.
They wont call it a layoff, it will be a restructuring to eliminate redundant positions. You know why have the amount work for 10 people and have 6 doing it. They will think those 6 working for 10 can be done by 4.
And dont forget that holy grail Rule of 40 the c level loves. They have to protect that or they may be on the street and you know the c level will protect themselves at all cost.
So call it what you will this is a long response from a fed up person who is pretty sure the restructure layoff talk has legs
Can anyone who is more finance savvy explain how bad the most recent earnings was? It was only a 1%ish miss? The stock is still relatively high compared to where it was, earnings brought it down but also the inflation report brought a lot of stock down at the same time too.
It even almost broke back above $70 earlier despite the CEO news.
I'd be pretty surprised. Lots of security acceleration work that needs to get done first. Most teams are already running very lean.
It's not off the table, though. After security deadlines and whatever happens with Mike settles, that is when I would start to be scared.
Or knows enough to hopefully put a stop to those rumors?