Qualcomm Cuts Jobs to Boost Profit
https://www.wsj.com/articles/qualcomm-cuts-jobs-to-boost-profit-1524115042
6 replies (most recent on top)
"What would a cautious, data driven, risk adverse individual do when he has just forcecast huge stockholder returns ?"
Chop of another limb, then another ?
Go fall on your sword would be the right thing to do...
It is all about profit
Errr, not really. Its not ALL about profit. Its more about getting $$$ back to stockholders. Profit is one way, but thats hard and long term.
Easier and quicker way to get $$$ to stockholders is cut costs, sell off stuff and offshore then return those profits via low tax 'repatriation of funds'.
Think about it from SM and GDs PoV. Goal : gotta return $$$ to stockholders, dividends, rising stock, buybacks. Where to get the $$ ? Well you could invest in long term technology bets; risky, highly risky, no guarantee of return, could loose it all, who knows when it'll reap benefits and how much. Highly uncertain and uncontrolled.
OR, you could layoff expensive employees. GD can compute very accurately the savings. Very deterministic. Very confident. Very prompt. A known $$ savings. Merely a deterministic HR process.
How much $$ savings do you need ? GD can run the numbers and give you a headcount #.
What would a cautious, data driven, risk adverse individual do when he has just forcecast huge stockholder returns ?
Stock will tank. No growth in future. Time to sell off each BU.
It wont help but for a moment, then what?More of the same please Mr SM? Do us a favour and fire your incompetant senior exec staff and then your own donkey a--. Quick, faster, execute you donkey!
So why are they laying off people that generate lots of profit? No, it is all about politics and s---ling at the great teat of QC until it is as dry as a husk.
it always has been!