Unless they shed some of the non-competitive products they will never be able to cut enough via a 5% here and a 5% there. Digital would be a great place to cut. They could get rid of synthesis, STA and test and keep FP and P&R. Or, they could get rid of it all. Even when the economy comes back:
1. Very slow migration to lower technology nodes
2. Pricing will still be under pressure given CDNS' poor tool set in digital
3. New contracts will start at a 90% discount and go from there
If anyone is listening, remake the company based on the world as it exists not as you want it!
I see the new 8K filing on May 14 shows the senior management and the board are taking temporary base pay cuts. (20% cut for the CEO, 10% for the rest of execs and the board, and 5-7.5% for the rest of the VPs.)
Perhaps they are going to do a smaller RIF, and then force the remaining workforce to take a temporary pay cut as well. That's just the type of "cheeze" I could see them doing right now.
well, let's see....
They announced their last large RIF on November 4, 2008. WARN requires a 60 day notice, which means Cadence could not legally lay these people off until Jan 4, 2009.
So this WARN notice is for the actual termination date of the workforce impacted in their November 2008 RIF.
Not sure there is much to discuss really.
The company did not lay off enough of the workforce back in Q4 to rebalance the cost structure to their revenue plan (they are an $800ish Million a year company now, not $1.6 billion). So either bleed precious cash, or make more cuts.
Until we see a different trend (ie: cutting off dead limbs in the business), it will probably be more of the same: peanut butter layoffs. Take their target cut % and then spread it across the organizations like a crazed sandwhich maker.
I bet they do a 5% layoff, try to spread it around geographically so as to avoid triggering Warn if possible, and it still won't be enough and not the right cuts. 5% is still not enough, but 5% makes them "appear" like they know what they are doing and actually have a plan. 5% they can wave off to investors as normal business decisions. So there will likely be one or two more 3-5% layoffs after that (Q4 this year and Q2 again next year).
I empathize and feel badly for the workforce having to go through a never ending cycle of layoffs with no real end in sight.