Middle managers (Directors) are told to trim expenses all the time. So much that some work done by employees on expense is transferred over to the capital column so that it looks better on the books. On the corporate side, there's really not much more expense items to cut any more, so the natural next step would be to cut head count and make the people do even more work. NMG's announcement to go IPO is not good news for the employees. None of the lower level/middle management employees have any stock options or equity to gain anything from an IPO. Most corporate employees have no bonus paid to them, not even at the Director level. Morale is an at all-time low and this mass layoff will only kill whatever morale that is left. There's still plenty of work to do be - so they'll hire contractors instead of employees. Using contractors look better on the books for them as they capitalize contract labor. It will be interesting to see how NMG can sustain on the public markets with the amount debt they have, limited market segment and a very competitive market place. It is annual review season right now at NMG, I'm sure they'll use the review season as a method to get rid of some more people. No doubt there are a lot of poor performers who should be canned but there'll be a lot of good people who may not be favorites with their managers who will get the hit.
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All retailers are doing the same but just not as drastic and obvious. Cut back payroll and everyone left is doing the work of many. You do what you can, but let's face it - there's only so much any one person can accomplish in a day. Back rooms are unsafe, phones go unanswered and customer service suffers. As customers shop on-line, brick and mortar stores are too expensive to run and be profitable. The people at the top just need to make their hefty paychecks, hang in there until retirement and live well. The worker bees in the stores are treated like crap by the customers - rude and ungrateful. Every day your self esteem plummets as the customers complain because they are expecting to be treated like royalty even though they are haggling over prices, returning in their old, worn clothes and shoes demanding new replacements. Retail is no longer a wonderful profession. You are treated like a slave with horrible hours and meager pay. Hey customers, if you shop on-line, send your returns back. Don't bring them into the store because the returns go against the store's sales numbers. When the sales numbers go down, the payroll gets cut. Thus the layoffs!
their IPO is a looming disaster in the making....The company is a wreck under corrupt CEO Karen Katz who knows me by name...She herself may be fired by next year The company sucks...if on Facebook see the reports on them....they aren't doing well
Some folks will make serious money here
It's always good for management, the little guy suffers
It's good for the management