Thread regarding SAS Institute layoffs

An IPO may not change all or any of those things.

But consider the larger picture...What about the children (insert wailing and gnashing of teeth)?!?!?.

The children still need allowances, no show jobs, and leadership positions.

Yes, sure SAS can IPO. But...
Is an IPO going to change the fact that SAS's revenues are declining?
No.
Is it going to change the fact that SAS's product strategy isn't working?
No.
Is it going to change the fact that most of SAS's smartest brains have left?
No.
Is it going to change the fact that SAS's brand is associated with legacy tech that companies are trying to get rid of?
No.
Is it going to change the fact that Wall Street analysts will want to maximize return to shareholders and that will mean laying off most of the workforce?
No.

"(New York, CNN)

Reddit, one of the original social media companies, is finally making its debut on the New York Stock Exchange Thursday — more than a decade after many of its peers.

Trading under the ticker “RDDT,” shares started trading at $47 and reached a high of $57.80 early Thursday afternoon, up as much as 70% from its initial price offering of $34. At its peak, shares of the stock had a market cap of about $10.9 billion.

It’s a major milestone for the nearly 20-year-old company, something Reddit has been preparing for since at least 2021, when it hired its first chief financial officer. It also marks the first social media company to go public in years, and its performance could be a signpost for other companies considering IPOs."

Again, this is a $10B valuation, for a company that, in 20 years, has never made a profit.

It's shame SAS is not yet "IPO-ready". Clearly anyone can IPO in this market.

"Until obvious redundancies are addressed… nothing will change.”

We can all agree that eliminating obvious redundancies would increase profits.

But we can also all agree that SAS is not being managed to maximize profits.

If it were, obvious redundancies would have been eliminated years ago.

If it were, obvious money-losing products would have been cancelled years ago.

If it were, SAS would not cap severance at one year, but at three or four months.

These actions would all increase profits. But SAS is not being managed to maximize profits.

Therefore, the lack of these actions will not prevent an IPO.

After an IPO — or private sale — whoever gets control will clean house.

[OP]

Whether it's an IPO or a private sale, the one thing that I think most of us agree on is that it will involve A LOT of redundancies.

How many is anyone's guess, but I would have thought the best return to shareholders would be to get rid of pretty much everyone other than the bare bones to keep the lights on and the renewals signed - working on the assumption that it's too late to turn things around.

I reckon SAS could carry on supporting and renewing customers who are stuck and incapable of turning SAS off, with probably less than 10% of the current workforce.

"Until obvious redundancies are addressed (for example the bazillion people in marketing who are in country offices or regions) nothing will change."

Yup.

"SAS returns to growth trajectory"

this scenario is what many observers find unlikely, hence the doubt about "successful" IPO or IPO at all. I don't think commenters are saying "can't". They are saying "won't". Only time will tell.

Well sure SAS can IPO. Nobody said it can't.

Does it make sense to do so? It seems the answer is no for a variety of reasons.

At the end of the day, only the people at the very top know for sure what the plan is.

Until obvious redundancies are addressed (for example the bazillion people in marketing who are in country offices or regions) nothing will change.

That kind of sweeping change is what is necessary to convince me SAS is serious about profitability and the future. Without it it's all just talk.

Well, the sellers get the proceeds of the IPO at the IPO price, so they may call that success. Of course, if they held back a good chunk of the outstanding shares, and IPO price tanks, then they lost that value "on paper"... so maybe successful.

The buyers got what they paid for (so many shares). If the price tanks and they were in it for the quick flip then no, not successful. But if they hold longer term, and SAS returns to growth trajectory, then yes, successful.

Good point, and I agree that SAS certainly could IPO once the financial statement requirements are met. But I have a question. Is an IPO actually considered a success if if the stock then proceeds to trade below the IPO price in short order?