I just saw the 2020 outlook in the earnings press release that contained:
“ $10 million of one-time charges to implement cost reduction strategies. “
Either they are closing offices or doing a bunch of layoffs. Which?
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They did a big cut in March and April, but no changes to the ELT...yet. I can think of a couple that should be cut loose but they are probably kissing the new CEO’s rear.
Anybody hearing anything now that the new CEO is in?
Been 3 months now. Expecting big cuts? Senior/executive leaders?
They did another cut end of March which included VPs and SVPs. Need to cut costs down. Company got a freebie though with the virus so they can now back down from their 2020 guidance.
@pceh+13I32A5H, which offices do you think?
Now with Phil gone I wonder how much love there is for Naples. Half of the ELT isn’t even based there.
I think it is both. Already saw a bunch going away a few days ago. And going by the amount paid, it doesn't look like it was all. If there has to be more done, it will be offices shutting down with a leaner workforce.
There has to be people layoffs. In the earnings call the CFO admitted to an analyst that their midpoint target is low to mid single digits organic growth. In order to continue funding stock buybacks they will need to cut payroll.
Looks like Phil left at the right time.