At least for this year. I'd really like to know if we can relax for at least a short while before we're it with more cuts.
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Trend I have seen is to finalize/execute any changes in latter part of Jan and be able to communicate and be able to communicate in advance of Earnings call in Feb. My 2 cents which is worth 1 cent, changes coming in 2025 will be about transformation versus cost cutting like in 2024 - figuring out what roles will help future growth even if some jobs are reduced, could be to staff up in other areas. In 2024 EPS targets were at risk (as demonstrated in Q1 2024 earnings miss) so since they could not increase revenue enough, be practical on how much stock to buy back, that left reducing operational costs. But if you look at earnings for Q2 & Q3, EPS had a beat which bodes well for not targeting OPEX in my humble opinion.
This theoretically makes sense maybe to someone high above but what actually happens is something else. Anyone below can deduce what would happen.
Pay for performance gives the highest share of rewards to 20%, 75% in meets and forces managers to identify 5% that need improvement even if there has been no discussions through year on areas for improvement. Those unfortunately 5% will not receive rewards and managers must explain this when there has been no feedback all year. As noted, they also have a target on them for any reduction in force. Told my leader to give me the needs improvement in place of my team since I don't agree with this model so I must need improving. Also said put my name on any list for headcount reduction in place of my people. Welcome a package.
Yep, we're just numbers in the system. Always stay prepared for anything that could—and likely will—happen. Welcome to the corporate world!
It's not over. And it doesn't matter if you are in "needs improvement". I have had top performers laid off and lowest ones, kept. Leaders will sometimes make decisions regardless of what the people manager says. I know this from first hand experience.
For small groups, the percentages are enforced at the next levels up.
There is a minimum size before the forced categories are applied.
Oh I see. What if you are in a smaller group?
HR guidance for people managers this year was to "compulsorily" have 5% of staff in the "needs improvement" category. So no, its not over. Wonder if the same guidance applies to leadership, but alas I'm just another in the 98%.
Ask your manager if you are the bottom 5% he submitted. If not, then you can rest for a relatively long period of life.
For what I have read in this forum (take it with a bit of salt though as they're only rumors) we should be fine until end of January 2025. If you're stressed about it, just try and check what jobs are out there. You don't need to apply right now but it might help you ease the anxiety a bit if you see there are other options out there. I know it's easier said than done but hang in there!
Having to worry about cuts all the time is affecting my health.