In the past week we've had layoffs in DevOps, Retail, and Marketing. SAS confirmed only the layoff in Retail, and did not give a headcount.
Does anyone know how many people were laid off?
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So why even bother with 1% reduction a year? The numbers appear to still be flat. Is it just to stay in the papers for "an undisclosed number of reductions" every month, to appear like actions are being taken?
I suspect the current “trickle layoffs” are a way of loosely mitigating uncertainty going forward while at least going through the motions of being a growing analytics/tech concern. Perhaps JG is not quite ready to sell, there is all of personal nostalgia and grieving/letting go process involved in seeing his legacy diminish. JG is in the enviable position of not having to make an immediate decision to radically slash the current size of SAS.
If heirs wind up with $1B each net, then they are still fabulously wealthy. I believe JS has more children so perhaps they only get a few hundred $million each.
It also keeps thousands of people able to keep paying their bills for a while instead of tossing them into this job market
It is death by a thousand cuts. But it’s also the kindest, gentlest way to treat employees, given shrinking revenues.
Any CEO trying to maximize profit would do an immediate mass layoff. This one won’t. Like all of us, he has his flaws and his virtues, and we should recognize both.
Humanitarian it may be, but it's death by a thousand cuts. It drags out the pain for those witnessing the slow and distressing decline of a company we all once believed in. Ripping off the proverbial bandaid might be more painful, but at least it would be a one and done. The road to hale is paved with good intentions.
I was told 5 DevOps, 100+ Retail, and 4 Marketing
I’m not as connected to marketing but know of a VP in Canada that was let go and a couple of long time employees in the US. I’ve heard the marketing moves were big but just don’t know too much.
Did you mean customer support or customer success?
Re: only keeping customer success
Lmao. I just sp-t out my coffee. Thanks for the early morning laugh.
Customer Success is the only area worth keeping alive
Customer success is overhead
How long until the books are detangled? 2025?
It seems is JG proving himself to be as humanitarian as it possibly can in the situation.
A cutthroat businessman truly trying to maximize for sale ROI would chop SAS to the bone now, consolidate as many functions as possible, get the books completely in GAAP order and start shopping the company for sale. The current rounds of layoffs, as painful as they may be to those impacted, are extremely mild In comparison to what would be done if profit maximization were his ultimate goal.
SAS Is quite likely past the point of becoming once again an innovation/growth powerhouse. The current management hierarchy is too well entrenched. Too many are either beyond a realistic timeline to grow their tech and management skills to a level commensurate with a world-class innovation company, or unwilling to make the personal sacrifices necessary to do so. This is the sobering truth that must be faced — also corresponding to comments about management often not knowing how to select the best employees to promote or keep.
Many of us spent entire careers (or nearly so) at SAS and now recognize how insular our environment was. We enjoyed much success for the first 25 years, success that continued to “build on momentum” until around 2010. We can thank JG for providing that stable environment. Yes it was a Shangri-La and we see that now, and the end result will not be that much different than many private companies with a venerable founder who eventually and ultimately fade
If SAS has made a decision to sell, it’s only sensible to become “IPO-ready”, because that gives them the options of either a public IPO or a private sale.
They can go to their investment bankers and say, here are our cleaned-up books, what IPO price can you get us?
They can also go back to BroadCom, and to private equity, and others, and say, here are our cleaned-up books, what will you give us?
Thus they can sell to the highest bidder. That’s what I’d do.
And, recognizing the declining value of the asset, I’d do it ASAP.
I’m beginning to wonder whether a Broadcom acquisition offer will reappear once SAS has disentangled its accounting. I do agree with others that acquisition is far, far more likely than an IPO.
Let’s say it’s about 1% in a year based on the comments in the press. Though we may feel very bad for our former colleagues, if acquisition means a 50% cut, even cutting 25% now in an effort to trim areas doing poorly (like retail) to invest in any growth areas would seem less painful than the inevitable. But since it probably just leaves inept execs and their inept directors and managers with nobody to “manage”, it will never work under their direction. Terrible dilemma. Hoping against hope for a better turnaround and future.
Broadcom typically lays off around 40%. Oracle laid off 55% when they acquired PeopleSoft. Numbers like that should be expected after an acquisition.
My question was, how many did SAS just lay off, in DevOps, Retail, and Marketing?
“ R&D … _completely_ gone” — good luck supporting “customer success” w/o at least a few seasoned devs to FIX sev1 & 2 DEFECTS found at customer sites.
Let's say the current headcount is 12,000. If I was buying SAS, I'd get ride of everyone other than the bare bones to retain existing customers as long as possible. R&D, Sales and marketing are completely gone, Customer Success is the only area worth keeping alive plus the bare minimum of HR and Finance to comply with legislation. Probably 1,000 people at most.
The answer is: not enough. We still have the incompetents in marketing, but the deck chairs have been rearranged.
Unless a person works in HR or finance, it's unlikely anyone knows the real number. waves to N&O reporter