Seems like a dramatic announcement if this was just a big downsizing. Seems more like a shut down with a few hail Mary moves to try to turn it into a big downsizing.
Cool so summarizing the comments here - they overpaid 1billion dollars in acquisitions (would have been profitable this year otherwise) and are now laying off staff to recoup losses?
My uneducated opinion is this company had some downsizing and restructuring coming. But the leading edge of a big wave of downsizes might look like this, too.
It always surprises me when layoffs are this large. I would have thought the business would slowly scale down to keep up with business cessation. Guess it would be more awkward to fire people one by one for redundancy purposes.
Well if we're speculating, I'll speculate something else. Mark is shopping the company around, trying to find buyers. The buyers told him he needs to axe some projects and fire Jane. These things might not be related outside this context.
It even says in the other article that they are downsizing due to an "external analysis". External analysis happen when you are about to be bought.
But a company deciding "okay, were done" and just shutting down is effectively laying off 100% of the staff. This company's leadership is already getting flak for laying off under 4%.
reply