Pace. How big will it be? $300m accrual buys a lot of severance. 1500 to 2000 heads? Where? Across the board? What does pace mean anyways? People arbitrage cease employment?
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The money will pay for more layoffs this time. Thousands of veterans have already been purged in the last 5 years, including tons of long-tenured Directors and above. It gets cheaper.
I think a much bigger percentage of the cost is going to be non-personnel related than last time (contract/lease cancellations, legal fees) as well as covering paying non-US people for much longer in order to satisfy labor laws
Last time around $300 m bought about 1500 layoffs globally
If a decision has been made to lower severance, there's zero reason to delay implementation until next fiscal. Especially not with a new CFO eager to make his mark.
@h4 FY27 layoffs will likely have the same severance, but sometime just before FY28 they will announce via filings they are going to reduce severance payouts as part of cost savings for PACE (yeah they are supposed to file it immediately when the decision is made but they can just pretend they finalized it then).
Assumptions that severance will follow a historical model are flawed.
It's the same nothing "win now" strategy rebranded.
~5000-6000 jobs gone over the next 3-4 years with the first ~1500 starting in January not counting hidden layoffs buried by ETW contract terminations. The main bulk will be all business and supporting functions related to APLA being kicked out for cheap ITC labor.
@d8 Could be some of the posts have been taken down, but the big driver for FY27 is going to be moving large sections of the business side of Finance, Supply Chain, Product Creation, Brand Marketing, and supporting functions like Comms, Operational Support, Tech in FY28 to either ITC or IHQ. Obviously nobody is going to be moving from US to those locations, so it's going to be laying those off and then rehiring in India.
Yes some of this is quite obvious but the poster isn’t wrong to ask for details. Yes, we know there will be offshoring in tech as does the poster by joking about labor arbitrage. We know Apla too. That doesn’t get us to such a large figure.
Were you asleep the last three months? Just go through the past threads on here. It's been talked about a ton with most of your questions addressed already.
Read the tea leaves it’s pretty clear where this will be coming from. EH was very transparent where investments are shifting