- Current trend of 8% annual reduction in labor costs according to John Stankey.
- Recently announced incremental 4% 2020 reduction in labor costs which it was stated equals $1.5 billion.
- 8% trend reduction plus 4% incremental reduction equals 12% 2020 labor cost reduction which equals $1.5 billion times (12%/4%) equals $4.5 billion reduction.
- Take out approximately $.5 billion for a reduction in benefits related to health care expenses (assumption) and that leaves a reduction of $4.0 billion in salary expense.
- Assume average annual per-employee salary expense of $100,000.
- $4.0 billion/$100,000 = 40,000 employees being surplus in 2020.
- Average family size per employee assumed to be at least three individuals.
- Well over 100,000 individuals negatively impacted in 2020 due to extremely poor executive management decisions that precipitated Elliot Management making their move.
The only good news is that rumor has it that Randall is quite ill - Bad eyes and some other stuff.
MY GUESS - HE WILL LEAVE END OF 2020. ANNOUNCED CHAIRMAN POSITION BEING SPLIT FROM CEO. LIKELY THE BOARD POSITION WILL BE FILLED BY AN OUTSIDER AND JOHN STANKEY WILL NOT GET CEO. HE WILL LEAVE OR BE FIRED BY NEW CHAIRMAN AND ELLIOT MANAGEMENT. THEN THE REAL CHANGE WILL OCCUR - ALL THE BELL HEAD VP AND UP WILL BE CANNED ALONG WITH A COMPLETELY NEW MANAGEMENT STRUCTURE.
Stay tuned - very unfortunate that 2020 may well be very bad news for ordinary employees but there will be some solace and justice in the shredding of the bloated L4+ management structure who because they are talentless bell heads will never work again.