Thread regarding ION Geophysical Corp. layoffs

Serious problems

60% layoffs will not happen - just not the way ION does things, but the company does face serious challenges in both the near and long term.

In the near term there is a simple lack of cash to keep the business running. It can be seen from the published financials that IONs cash burn rate is extreme. Selling of the land group and the reversal of the lawsuit will help to a point and may enable the company to last a couple of quarters or so longer, but serious changes have to be made to ensure the survive ability of the company. Hanson has used layoffs to convince shareholders that action is being taken to improve the condition of the company (which is why they come each quarter just before publication of quarterly financials). But there are a limited number of employees left to layoff.

In the long term, when the industry does recover ION will be in a difficult position to be able to take advantage. All foreign offices except London have been closed, staff have either been laid off or have quit (25% in last 6 months + 8% of data processing last summer + those that left) leaving the head count at I would estimate 40% less than what it was a year ago and the land group has been sold. ION has a greatly reduced footprint to recover from when the upturn arrives. ION cannot compare to the size of companies like CGG (over 9000 employees compared to less than 1000 at ION). ION used to compete by being a niche player with a technological advantage that no longer exists.

Change in CEO is essential for the long term survival of the company. Hanson has no idea how to run the organization, or even what employees do, having zero background in the industry. Curious that he would take a 43% pay increase in a year of layoffs and 10% pay reduction for all other employees. I worked there for a long time and do not know one employee that respects him.

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| 2151 views | | 3 replies (last September 2, 2015) | Reply
Post ID: @OP+DgNPUiQ

3 replies (most recent on top)

Agreed. Keith Ritchie would be a good candidate, or Mark Walker if he hadn't been laid off today.

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Post ID: @11FP+DgNPUiQ

Need Kieth Ritchie to run the show. He's been at company for years, knows the industry, successfully ran OBP until the Culligan man and C Usher ran off Polarcus.

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Post ID: @1soj+DgNPUiQ

Yep, totally agree - well said.

Nobody respects "The Culligan Man", or his personal jackass, Steve, "Master Bate", neither knows a thing about seismic or the business in general.

I really have no idea what the BoD is thinking, and especially Jay Lapeyre. He's lost millions on ION and continues to let Brian line his pockets to the detriment of the company. Steve Bate has a history of ruining businesses, Sensor and Land to name 2, yet he's allows to exist and consume valuable oxygen.

I heard the only reason Hanson stepped into the CEO role was because he had dirt on Peebler and threatened him with it.

If the board has any hope to right the ship and restore any credibility to the brand, they have to start at the top, ditch Hanson and Bate. Or maybe they are just waiting for chapter 11 so they can ditch the debt, get it cheap and start fresh.

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Post ID: @1NHC+DgNPUiQ

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