I wonder if anyone ever made an analysis of the actual cost of reorgs/cuts/layoffs vs. savings and company growth. Cost-cutting which is happening all the time everywhere is negatively affecting efficiency, streamlining, rational utilization of people’s skills and capacity, morale, results, you name it. They cornered CVS into a state of constant change, shrinkage and loss of competent people. It seems to me it gotta give somewhere and soon.
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I’d also like to know how many jobs have been outsourced at this point, compared to say 10 years back. CVS execs are willing to impoverish US lower level workers if it means saving a buck and lining their own pockets.
Can somebody explain how a pricing and utilization problem turned into fire everybody and look for shadow organizations? Karen has zero clue what she's doing.
Worst leadership in the industry. The board should be sued.
No one, including the executives that are advocating for layoffs thinks it's actually creating efficiency. It's an accounting exercise, plain and simple - and it's something that the stock market usually responds well to, at least temporarily. They can write off the layoff costs, book the "savings," and then rehire half the same positions they just cut and do it all over again.
They justify it by saying the severance/reorg costs are considered a one-time restructuring expense that shouldn’t impact future earnings projections. Thing is though, when you do it every year the analysts on Wall Street notice. Saw it at a prior job, loved when the analyst seemed to call it out on one of the earnings call.
No competent leadership in an organization can justify the frequency and extent of restructuring that has occurred at CVS over the past 7 years. It’s a sign of failed growth, failed job design, and failed strategic planning.