....and batten down the hatches this storm and fall-out are going to be BIG. I mean, really, really BIG. BIG, BIG, BIG!!!!!!! AND IT WILL HAPPEN FAST!!! Better start selling or leasing out some of those headquarters buldings in Deerfield that are soon to be empty.
Oh yeah, is everybody happy with their raise this year? How's that working for ya?
Just heard that B. Pugh announced 25% layoff in purchasing department and major restructuring. Must be in anticipation of less merchandise needed. LOL
Seriously - I am saddened for those that are affected. This company does not need to destroy so many folks lives and yet they continue to so ruthlessly. I do not think it makes that much difference to the investing public, however I firmly believe it makes a BIG difference to the companies reputation and has and will continue to damage its overall financial picture.
Since the re-wire it has been 1 to 2% average with less than 1% to zero not uncommon for lower management to non-management. For mid-range management, minimal, but minimal increase on a $150 - 200,000 base is still 20 times greater than the rest of the employees. For upper level executives, just check out the proxy material from one year to the next. Pay particular attention to the change in equity comp benefits and cash bonus. The Executives defintiely take care of themselves and after a few years of underwater stock options, changed to restricted stock units, which have no downside. The cash bonus remains consistent even in poor performance years. Interesting that a tough economy results is tightening up everywhere BUT the executive offices, which have prospered. (and please, no replies about how "hard" these executives have worked to eek out the numbers, everyone knows it was primarily a result of squeezing the store labor.) Austerity is not success, it is survival and a desparate measure. Why should it be rewarded?
Yes, I heard the company has hired outside consultants (again) to revamp and slim down costs (again) and that headquarters personnel are going to get hit hard and there will be hundreds of layoffs. All this due to lack of contract with Esrx and anticpated revenue loss. Good Luck to everyone.
"All this due to lack of contract with ESRX and anticipated revenue loss."
I am conflicted since stephanie, who works for Walgreens as an RPH in Fargo, ND says the ESRX conract is hardly profitable, today, and not profitable at all at the requested reimbursement rates from Express Scripts. I could understand overhead reductions and even the dreaded "Black Friday" bloodletting activity if the ESRX biz was a big profit center. But if it is marginal business, anyway, why would eviscerations at either the corporate or store level be necessary. Losing profitless revenue should be net neutral to overhead.