Rumor around CRM campus is that layoffs will be announced officially on Friday (there is a supposed big financial meeting on Thursday among the high upper management). People will officially be let go at the end of March. That's what I've heard from sources on the campus.Hopefully it's not true.
I believe the WARN Act requires 60 day notification. The people selected for the layoff will probably be allowed to hang around and clean out their desks during February, and they will continue to collect a paycheck with full benefits until April.
The need for a "big" financial meeting on Thur
also does not bode well for an earn. call tmw.
If the bad news is not already in the stock now,
it will be by Thur morning when this POS gets
crushed from a lousy conf. call. Lotsa luck to bagholders.
Any word on when the layoffs for US divisions will be announced and the size? Specifically the Maple Grove and Arden Hills units? The layoff at Ireland unit is <6% of the staff, hard to imagine that much will please Wall Street...I guess the management will hint at (substantial?)cuts during the next call and actually start making cuts later in the month/quarter...
Talk has it that lay off announcements are to be made tomorrow or Friday.
I wonder how many VP's, directors, and managers will be laid off to recoup the billions they paid to JnJ?? (Hint: 0.00)
All of the "quality" systems they have put in place and bloted corporate structure needs to be cut way down. The worst offenders of non-contribution lies in the corporate staff. Very few of them, if any, have ever actually ran a business. Lots of consultants, ivy leaguers that are way over paid and dictate to the divisions. Much of the personel in place are there to support a bloated and unnecessary quality system that was put in place by accademics that have never run a business. Basically paper pushers. Sales is way overpaid to deliver donuts to hospital staff on a daily basis. LOTS OF FAT and UNPRODUCTIVE people not focused on new business and making money for the shareholder! Cut, cut, cut!!
I agree "Quality System" is one of the root causes. I agree that it is caused by Corporate Academics. Most managers in this place were in the right place at right time not necessarily qualified and they feel threaten from those that do. They do not want to promote the people who know how to do things. Another root cause is the Business Structure " Corporate Control" especially Quality and R&D.
I left when PVR was announced as I knew it was a waste of Time and Money!
Unfortunately, the people making the decisions on who to cut are the "non-value added" people you just described. Product development projects will get cut, just as they were in the last major layoffs in 2007, and the staff working on those projects will be let go. Years ago, bonuses were taken away from the non-exempt employees, while people from the manager level on up rewarded themselves even bigger bonuses. Of course in 2009, there was a salary freeze but mgmt still rewarded themselves generously.
allegedly the announcements will be made in the first half of February, possibly next week, nobody is sure what percent will get cut, quality may be an easy target for cuts since the FDA ok'd the facilities during a recent reinspection to lift the warning letter.