That's pretty rich. EVEN IF the 1,500 employees counted toward the $1bb (and it probably did), assume they made about $100k each (on the high side, if you ask me, but who knows?). That's a savings of only $150mm. Double the income, and it's only $300mm.
Still, if they fired 1,500 employees, how many did they hire and at what income?
Also, the concept of using the software for savings ASSUMES that there will be some layoffs due to efficiencies, so this probably was factored into the equation and still makes sense to include in the $1bb in savings.
The real twist here is whether or not Larry can squeeze another $1bb in savings this year....regardless of whether layoffs are included.
I'm willing to bet that a HUGE portion of the $1bb came from true cost savings....paper, supplies, overhead, etc. |
