https://www.fool.com/investing/2018/12/13/broadcoms-planning-to-milk-its-ca-technologies-acq.aspx
2 replies (most recent on top)
To answer @WB***mii I posted below in another thread. I would say we are already staffed at the 900m level. Any additional cuts is probably because of greed.
Back of napkin calculation..
Revenue 4.25
Less 28% tax
Less $300 m fcf
=2.76b
Divided by 11k employees
Cost per employee 250k
Given all the most highly paid have been term. Reduced expenses, travel, office consolidation. This translates easily to 200k per employee, no??
900m / 200k =4500 employees
Less the 2800 NA that were not term on day one. Leaving 1700 for the rest of the world where the costs there are easily not 200k per employee more like 100k on average (bulk coming from India. Seriously how much does a senior engineer in itc earn ?? 2m rupee is not even $30k).
So taken another way....
2800 * 200k = $560m us cost
900m - 560m = $340m non us cost
Let’s suppose the average cost per employee in the rest of the world is $125k when the bulk is in India costing significantly less.
340m / 125k = 2720 employee
Grand total 5520 (2800+2720)
After services is cast away we might very well be inline. Any layoffs will be the small variety we have been accustomed to with CA yearly spring cleaning. Under octane I expect them to occur in late fall
Based on Hock’s comments, how many people do you think would need to be cut to meet this target? I am guessing that 1,500 - 2,000 would remain? I’m fine with whatevet happens to me but it is clear more cuts are coming at some point.