Regarding cuts in commercial PC division
It sounds as if they at least have thought through the process long and hard in order to be able to make such a move. That would include removing redundant or duplicative functions that are performed elsewhere in the Company as well as integrating any of the synergies from the ICO asset acquisition into their business model.
When the patient is sick, surgery is the way to go and by the looks of it, after restructuring businesses so that they can be compared to others in the market, they apparently have enough information to do what is needed, not to mention, enough time to select the right people for the job where the value is added. With a simplified product line, there is also less need for R&D services which are duplicative.
Most folks have been complaining about a lack of progress in the commercial group. I think that this ought to jump start that effort and bring its business unit operations much closer to what they will look like by year's end in order to have the forecasted profitability. Second, the complaint has been that they have not cut enough folks. Well this kind of takes a stab at both. It will be interesting to see where they tally on the 25th.
The new CFO has a high percentage of his compensation tied to the success of the Firm. With virtually no one to answer to from a political standpoint, he is motivated to do what is best for shareholders and his pocket book alike -- and in my opinion, he really will do so. It will be interesting to see where they think the additional fat is hidden. |
