If a company lays off people even when they have experienced "the strongest top line results in the company’s history" you can be sure there is one of the dreaded @#$%&@ bean counters at the helm. Anyone like to bet on Zarlink gong bad or bust in the next 5 years?
There once was a brewery in Winnipeg, Canada, that tried to sell their cases of 24 beers for 25 cents lower than the usual price. Local laws prevented this, so instead they sold the cases at the usual price but taped a quarter coin inside each case. Voila!
Yes...there is a business direction transition going on at Zarlink and Gary Tanner has been brought in to execute it.
And, yes, I understand the idea of reshaping the "workforce" to better address new directions a company is heading in.....
But it still seems that if a business is doing (reasonably) well during such a transition there should be scope to retrain and repurpose existing staff for the tasks to come.
Unless of course it is question of firing staff in one location with a view to expanding in another location (where staff and operational costs are lower).
Still, no job is forever and if making money out of creating jobs was so easy we would all be entrepreneurs.
I had a similar thought, except I focused on his use of the phrase "top line results" rather than profit...which made me think that they must be wrapping dollar bills around every part they ship.
But then I remembered Zarlink is Canadian, so perhaps the more appropriate thought should've been "they must be strapping loonies to every part they ship" :)
Those small percent of layoff is a common one, as those of CEOs want some of marginal protection on their next earning’s report. It is not only CEO level, but also director or manager level to have their protection. It is one of workforce management tactic though by many schools and other fellow.
For Zarlink, I am hoping Gary 1). does not buy any company with over price, 2). does not change too much from the current product line. I may watch this company time to time.