victor -
It has done that except for about 1,500 who will be gone in a few months.
My estimate based on a crude rollup of announced cuts shows about 12,000 laid off or reduced through normal attrition without replacement, and about 4500 approved but not yet cut in Europe. That roughly equates to the 17,000 number originally targeted.
But the anecdotal evidence suggests that there is a need for additional headcount reduction, based on 2 things - first, revenues for the acquired businesses (DEC and Tandem) have dropped more quickly than the original projections had assumed, and second, the staffing does not seem to reflect putting resources in the strong growth areas of the business. I understand that the model for the high end businesses requires more R&D and development resource, but I am concerned that CPQ needs to apply its low-cost and high efficiency model to the DEC and Tandem cultures. It seems at the moment that some of the inefficiencies and high costs of the legacy culture are instead leaking into CPQ culture. I think this is what Rosen was referring to with his remarks about excessive bureaucracy. |
