Let me help you all out and dispel the rumors I see here. 20% cost cutting occurred but many of those people actually billed hours. Even senior managers bill hours, so randomexile doesnt know what he is talking about. If you are more than 2 weeks without billable hours and are not core (go team) then you get cut/laid off.
DBR is closer to correct. Once BAH was a premium company, but they are no longer the best value, they are overpriced. Take share didnt do anything, they hired a bunch of college kids for 50K a year and laid off people with experience. Now the govt knows this and they are looking for capability and best value, while at the same time there is a push to grow small businesses in the US. Meaning less money flowing to shareholders and VPs and more flowing to the little guy. BAH cant compete on 8-A or small biz set asides.
Today they announced more layoffs, you are seeing a start of the decline of BAH.
Sequestration? well that isnt going to happen. the decline of BAH will happen because they still need to come down on their multiples, to do that they reduce profit margin/revenue. The stock tanks. I wouldnt be surprised to see single digits in 2 months or so.
The real issue is the greedy executives who took their 8M and CEO Schrader who sold the company down a river for 30M. Now the free handouts have ended and nobody at the top has the capacity to steer the ship to safer waters.
CACI is a better choice for weathering reduced govt. spending.
The Partners and VPs (as senior as you can get) who were laid off bill nothing, or almost nothing (their time is charged internally, and eats revenue), and they were the bulk of the purge. Some Principals and Senior Associates were laid off as well, but even they don't bill more than 30-40% of their time, at best.
Depends on what you call a senior leader. The majority of the layoffs were Partners and VPs (at the highest levels of the firm) who are virtually all overhead. Very few Principals and Senior Associates were exited, and not too far out of line with ordinary mid-level transitions. Even those Principals don't bill more than 30-40% of their time.
BAH current problem is they're services cost more than other like contractors, however, they do have very qualified people. Question is with the budget crunches everyone finds themselve in can you get by with a cheaper contractor? If so, BAH may not do well in this enviroment. To suceed, BAH needs to revamp their cost structure to be competitive.;
It won't. BAH laid off 20% of upper management last year to trim fat ahead of leaner times, and is in the final stages of tightening lower level corporate overhead, but is actually expanding client-billing positions. One of the things BAH does better than its competitors is target core/essential services with its clients, and they (generally) have more stringent hiring standards.