Last week my employer announced it failed to meet its quarterly earnings and revenue numbers. Naturally the stock price dropped as soon as the news was made public. It was something like the first time in eight years that the corporation didn’t meet its quarterly targets and as a well-established tech company that services governments, it’s considered one of the bellweather companies about the sector’s financial health. So everyone concedes, things might not be looking too good for the global economy.
D’uh, ya think? All those austerity programs, cutting government spending around the world, you think that might have an adverse effect on the IT segment that focuses on selling goods and services to governments?
What an insight.
Meanwhile, the company blamed the shortfall on failure to execute, specifically on sales, also noting that Easter may have affected sales.
While it’s saying it had trouble executing, it also said it’s going to spend one billion dollars on workforce re-balancing in the second quarter, the latest euphemism for firing people. Now we're receiving emails and encouragment that we need to improve how we execute – work faster and more efficiently.
So if I’m correctly following this logic, we’re having trouble with the speed of execution so our solution is to decrease the workforce and ask the people remaining behind to work faster and harder – and probably do more jobs, as well, since they are less people.
I should have gone after an MBA because I don’t understand that logic at all. That’s probably why I’ve been saying for years that culling the work force will give you short term gains but will cost you in the long run.
Looks like we may have started the long run.
Of course, there are rumors the workforce re-balancing will be derived from selling off some business units. Internet rumors has the company divesting some server business.
Should be an interesting quarter.
Causes Michael Seidel Supports
Kiva, Women's International League for Peace and Freedom, Propublica.org, Doctors Without Borders, GreaterGood.com