I mean the company is not in such a bad place right now, and there are some segments of ou business in which we are extremely successful. I get the restructuring , the new direction and whatnot, but why is there so much uncertainty and layoffs in a company that’s generally doing OK?
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"No Development of new products to sustain future profits."
Brother, you're not kidding. Got laid off from Space after they let product and business development languish for years. (Once was told straight up upper didn't want to make the sort of capital and people investments to remain competitive.)
It is the only way, they can balance the account books without raising suspicion from the investors, SEC and global markets on their performance. Most of the investors are foreign born and they channel their money through funds/securities companies.
Everyone knows that the market was created based on speculation and without data. So, when the bubble pops and deliveries cannot be made, then the pressure is relieved by laying-off laborers, to pay the investor and still reporting HIGH GROWTH and BIG numbers (all false data).
Your revenue is being re-distributed and the risk that you'll fight for it, in comparison to that of a potential investor is low. So, there is lawsuit for fraud and crime from an investor but a very low probability of a lawsuit from a former employee. Employee means SLAVE who can be pushed and oppressed and bullied.
@1oul Prozac Timmy will be out the door this year taking all those nice bonuses with him. When the new guy takes his place and needs to look good, watch for an increased amount of those small layoffs.
They have to ditch the older employees in the US to reduce their medical cost liability as well as to eliminate their higher salaries in order to replace them with youngsters. Young employees get paid less and incur reduced medical expenses. Management doesn't realize yet that you get what you pay for.
Timmy the baloney man gets his bonus every year including 2016 when we had furloughs, RIFs, and pay freeze . Especially in Glendale space we lost our best people. So now they have these newbies (no disrespect to them) have to pickup without the tribal knowledge passed down. Lets not forget corp management spend 5 billion buying back company stock in 2016.
It's a One-trick Pony Leadershite team. They don't know how to create new products & markets because...it's just soooo hard. You have to think, you know, and not just listen to "yes-men". It's much easier to be sadists and chop more appendages off. Remember they get paid the BIG BUCKS because management is soooo smart and irreplaceable. Cause' many have MBAs.
They layoff for 2 reasons:
1) because it is the easiest way to make numbers for wall street in the short term (and if they go too far and need a body then they can higher a lower expense replacement such as a young guy/gal right out of college or better yet a contract employee or even better someone in India)
2) Because the other workers who don't get laid off have so far been willing to take on more work to make up for the fewer experienced workers. I hear the urges and pleas from my boss everyday to pitch in please just get it done. Until there is more push back by workers - just say no or your don't have anymore notches left to take it up, it will continue. I am older, experienced person and a layoff wouldn't hurt me too much in my situation; pretty burned out too. I have been pushing back and saying if we had another body it might get done. So far no argument from the boss. You can only work so many nights and weekends before you really don't feel like it anymore.
It's all about profit margin. They can't control revenue (sales) and might even have to be discounting product heavily to sell it. They can control costs to the extent that every employee that is not touching project is considering dispensable or at least replaceable as an excess cost. Think of the Toyota theory of reducing inventory (headcount) until quality problems are exposed except H does this with people.
Global expansion. As they (HWell) move into new countries and set up shop by hiring local staff they let U.S. talent go. Also, they want specific career fields in specific areas. Since not everyone will relocate to the specific area they are let go. Third, executives get better bonuses with a higher profit. They show higher profit when they let people go.
The reasons that all the layoffs are happening:
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Lack of Foresight by the Current and Former Regimes (2002- to present) running this Corporation.
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No Development of new products to sustain future profits.
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A Hail-Mary Pass into the end-zone in the hopes of cornering the market for Industrial Software (this means no hardware development). See the tale of General Electric , if you want to know how this will play out.