Thread regarding Oracle Corp. layoffs

Oracle's math is like this.

Salary of senior rep / salary of junior rep = 4

Who cares how many junior reps = a senior rep in terms of productivity, we can program them like robots, train them to read scripts, and dial for dollars. Surely if each one is half as productive as a senior rep, we can get 2x bang for our buck.

It never works out that way, but it's how bean counters like MH see the world.

MSFT has a strategy; oracle doesn't

Layoffs in sales don't generate revenue (top line growth), but reduce expenses (bottom line). If the top line remains constant (which it might in the short term) and the bottom line shrinks, the profit margin increases. As a result, investors are surprised by the "improvement", the stock price goes up and executives sell their stock options for huge sums of money.

At a deeper level, at least with Microsoft, it is a matter of aligning the organization. On-premise license sales, while still significant, is shrinking and the industry is moving to a consumption-based model that has gained popularity with Cloud. Microsoft is trimming back on those who are focused on the old model and gearing up for the new one.

With Oracle, the same market dynamic is at play. It just seems that Oracle isn't really sure what to do as it doesn't want to invest at the same level as Amazon, Microsoft or Google, but wants to make sure that it doesn't get totally wiped out. At this point, it seems to be following the IBM model -- layoffs in the unprofitable areas, try to find new growth potential and drive down employee costs by hiring college grads and/or overseas.