ADP management has a two-fold purpose behind the office closings. First, management has decided that their employees earn too much money, and are replacing experienced workers with cheap, inexperienced lower paid employees. Second, management does not want their employees to work from different offices strung all over the place. They want just a few centralized locations where all workers can be congregated. In addition, they don't want their employees working from home any more. This was explained in an ADP meeting in November 2015 that I attended. They said that the Baby Boomer generation was retiring in great numbers and that the new Millennial generation workers were entering the work force. In rather nice and obtuse language, it was explained that many of the new workers did not have a great work ethic. So to "help" the new employees to perform their labors in an optimum manner, they would have to work from a central office where they could be watched and "cajoled" into working in a proper manner. While Baby Boomers could be trusted to work from home, Millennials could not be trusted to do so. So no more working from home.
As to the proof that this is happening, we only have to look at the layoff picture and the new ADP offices being secured and opened within the last few months. ADP has always had layoffs every 2 to 3 years. However, since early 2016, these layoffs have dramatically accelerated. The number of people that were laid off in the last year has been staggering. ADP has cut its workforce in an unprecedented manner. So many people have been thrown out, that there is a danger that the people still left will not be able to adequately service clients and keep the company going.
At first, it seemed that ADP was aiming to go out of business, until it acquired some new offices in Norfolk Virginia, Maitland Florida, and most recently Tempe Arizona. If you check for ADP jobs at those locations on Glassdoor.com and Indeed.com, and sign up for their job alerts, you will see a lot of jobs generated there almost daily. A veritable flood of jobs, and where the proposed salaries are shown, at rather low rates. In addition, do a google search for "ADP Norfolk", "ADP Maitland", and "ADP Tempe" and check out the news stories as to why ADP opened those locations.
Putting these facts together, it can be seen that the aim of ADP is not to lay off most of its workers and then go out of business, but rather replace them with new, younger Millennial workers who will not work from home, but from central offices where Big Brother can watch over them and "motivate" them to come in to work on time, to work in an acceptable manner (put in many overtime hours), and be as productive as possible.
ADP filed some paperwork with the SEC stating it's financial plans and requirements in 2016. In these plans, a reorganization was mentioned that it would be completed no later than the middle of 2018. Thus by that time, all the experienced, high paid employees would have been laid off and have been replaced by the cheap employees working from the now fully operational offices.
It is most likely that anyone still working for ADP (who has not been hired within the last few months at one of the new locations) will be terminated either this year, or no later than the middle of next year. I have also heard that the latest ADP associates who have been terminated, no longer get severance packages, but are instead FIRED for "not being productive enough".
I wish the remaining associates at ADP the best of luck weathering this storm.
- Reposted from another thread here, thought it deserved its own thread.