NO LOVE AT CITRIX (01/31/22)

JANUARY 31, 2022 — CITRIX TO BE ACQUIRED, LAYOFFS PENDING?

Private equity firms Austin, Texas-based Vista Equity Partners and Menlo Park, California-based Evergreen Coast Capital have announced that they will purchase Citrix, a desktop virtualization specialist, for $16.5 billion to combine with Palo Alto, California-based Tibco, an analytics company. The company will be taken private with the deal expected to be completed by mid-2022.

The bad news, is that Evergreen Coast Capital is a subsidiary of activist investor Elliot Management with a reputation for reorganizations, divestiture of underperforming assets, extreme cost-cutting and personnel reductions, spin-offs, and upstreaming dividends to shareholders.

There is no doubt that the deal was driven by Elliot… “Elliott's Jesse Cohn joined the company's board in 2015 when the hedge fund urged Citrix to spin off some units and buy back shares, before stepping down in 2020.”

JANUARY 12, 2022 -- 80 LAYOFFS IN SANTA CLARA, CALIFORNIA

The restructuring is continuing with 80 layoffs, including engineers, senior directors. and other managers. at the company’s Santa Clara, California campus scheduled for January 18, 2022.

According to a company spokesperson, the restructuring will allow Citrix, which offers virtualization software, to improve its profit margins and position it for more predictable and profitable growth.”

NOVEMBER 18, 2021 — RESTRUCTURING LAYOFFS CONTINUE

The company’s board-approved restructuring plan is proceeding with approximately 110 layoffs, including full-time and part-time employees located at the company’s Fort Lauderdale, Florida headquarters.

NOVEMBER 16, 2021 — 50 LAYOFFS IN RALIEGH, NORTH CAROLINA

The company continues to implement its restructuring plan to improve operational efficiency. Approximately 50 employees in Raliegh, North Carolina will be impacted.

According to a company spokesperson, “We carefully examined our entire workforce and identified the roles and org structures we need to deliver on our strategy to help customers accelerate their IT modernization, enable secure distributed work and boost worker productivity. In some cases, employees may be shifted to new roles where they would focus on our key or new investment areas, and in others, positions will be eliminated to ensure we operate as efficiently as possible.”

“We are looking to ensure that we’re making all of the necessary investments that support our growth. And we’re looking to remove distractions that not only depress margins but distract us from growth.”

OCTOBER 6, 2017 — Original post…

According to published reports, Citrix may be cleaning up its operation by reducing personnel costs and enhancing profits in order to be more attractive to potential buyers.  According to a recently filed Securities and Exchange Commission report, look ahead to another round of mass layoffs that may equal or exceed the layoff of approximately 1,000 employees in 2015.

Like many underperforming companies, the Citrix CEO, Kirill Tatarinov, was replaced early in his tenure by its CFO David Henshall in July 2017. Some Wall Street analysts suggested that this move might signal an emphasis on profits rather than growth. This is bolstered by the company’s corporate-speak blurb that attributed the move to “a series of strategic initiatives intended to drive operating margin expansion, increase capital return and facilitate further investment in accelerating Citrix’s transformation to a cloud-based subscription business and in high-growth areas, such as data security and analytics services.” Earlier this year reports that Bain Capital, The Carlyle Group, and others were looking to take the company private; but no purchaser is currently in sight. Once again, an activist hedge fund, Elliot Management, seems to be driving the changes.

From the SEC filing … Item 2.05. Costs Associated With Exit or Disposal Activities.

Consistent with its previously-announced plans intended to accelerate the transformation to a cloud-based subscription business, increase strategic focus, and improve operational efficiency, on October 4, 2017, Citrix Systems, Inc. (the “Company”) announced a restructuring program to support these initiatives (the “Restructuring Program”). The Restructuring Program will include, among other things, the elimination of full-time positions and facilities consolidation. Any
position elimination proposals in countries outside the United States will be subject to local law and consultation requirements.

The Company currently expects to record in the aggregate approximately $60 million to $100 million in pre-tax restructuring charges associated with the Restructuring Program. Included in these pre-tax charges are approximately $55 million to $70 million related to employee severance arrangements and approximately $5 million to $30 million related to the consolidation of leased facilities and other charges associated with the Restructuring Program. Substantially all of these charges will result in future cash expenditures. The Company currently anticipates completing the majority of the activities related to the Restructuring Program during the fourth quarter of 2017 and during fiscal year 2018.  <Source>

Again, it pays for employees to watch personnel changes, the appearance of activist investors, and SEC announcements.

NO LOVE AT RYDER LOGISTICS (01/21/23)

JANUARY 21, 2023 — 801 LAYOFFS IN AUSTIN, TEXAS

"Ryder anticipates that approximately 801 Ryder employees will be terminated between March 18, 2023, and March 31, 2023, at an Applied Materials semiconductor plant located in Austin, Texas.”

"Due to a customer’s changing business needs, Ryder will no longer operate the customer facilities located in the Austin, Texas area. We understand the customer is insourcing a significant portion of the operations and transitioning a portion to two third-party logistics providers."

MAY 14, 2019 — RYDER EMPLOYEES TRANSITIONED TO A NEW SERVICE PROVIDER IN PLAINFIELD, INDIANA

Ryder Logistics is shutting down its Whirlpool distribution center located in Plainfield, Indiana and laying off 436 employees.

However, the story has a happy ending. According to a Ryder spokesperson, the decision was driven by the “customer’s changing business needs,” resulting in the loss of the contract with Ryder.

"Ryder is committed to ensuring a smooth transition for the customer and its new service provider, which will continue operations at the facility," the statement said. "Of the 436 employees at the facility, 435–or all but one employee–have been offered positions with the new service provider or redeployed to another Ryder facility."

Ryder’s logistical operations will be assumed by Neovia Logistics Services LLC.

APRIL 8, 2019 — RYDER SHUTS CALIFORNIA WAREHOUSE OPERATION. BIG PLANS AFOOT?

Miami, Florida-based Ryder System, Inc., the truck rental, leasing, and logistics company, has decided to permanently close its distribution center in Moreno Valley, California, which will result in the loss of 145 positions. According to a Ryder spokesperson, the closure is attributed to a customer’s changing requirements and the termination of their Ryder’s account.

There was no mention of Ryder’s plans to compete with Amazon and others to offer direct-to-customer e-commerce shipments of goods from large purpose-built multi-client facilities, one such center said to be nearing completion in Perris, California, and another located in Fort Worth, Texas. A third center configured from an existing distribution facility in Douglassville, Pennsylvania, will round-out the trio of initial facilities.

These full-service facilities represent a significant employment opportunity in their respective areas.

Original Post…

Being part of an integrated supply chain poses its own risks as employees are susceptible to events outside of their industry and outside of their control. Consider the impact of the mass layoff of 700 workers at the Spring Hill, Tennessee General Motors Plan. Ryder Logistics, a subcontractor to General Motors, responded with a WARN (Worker Adjustment and Retraining Notification Act) notice to the State announcing the “permanent layoff” of 361 employees. This will be the second mass layoff to impact the area.

Contrast that with Ryder’s August 2015 announcement … 

“Ryder Supply Chain Solutions plans to create 606 new jobs in Maury County through an expansion of its warehousing, transportation, kitting, and assembly operations. The Miami-based commercial fleet management and supply chain company will invest $16.5 million on equipment, information technology, and infrastructure and double to 600,000 square feet the space its warehousing operations occupy on General Motors' Spring Hill campus. Ryder employs 200 people at the logistics operation that supports client manufacturers such as General Motors. Employment would increase to more than 800 over the next five years from the jobs to be added.” <Source>

Time to check if your position dependent on another company or industry doing well. 

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

NO LOVE AT GENERAL MOTORS - SPRING HILL, TENNESSEE (Updated)

JUNE 25, 2020 — DISCONTINUING THIRD SHIFT, 680 EMPLOYEES LAID OFF

General Motors has announced that three operational vehicle assembly shifts will be reduced to two and impacting 680 employees commencing on July 31, 2020.

A company spokesperson noted, “Today’s market conditions continue to evolve as we see the impact of Covid-19. We believe the best way to react to this unforeseen change in our market is to reduce output and operate on two shifts effective immediately. This adjustment allows the plant to maintain stable production, protect the value of our brands in any sales environment, and to provide the smallest impact to plant employment going forward.” Spring Hill is currently producing the Cadillac XT5, Cadillac XT6, and GMC Acadia.

Original post…

General Motors has announced that it will lay off up to 1000 overnight shift workers at their sport-utility plant in their Spring Hill, Tennessee assembly plant. According to a General Motors spokesperson, the sales of their GMC Acadia and Cadillac XT5 crossover SUV has been moderating. It is anticipated that some workers may be able to transfer to other areas that makes engines and other vehicle parts. This realignment of production is to be expected. According to published reports, GM has laid off approximately 5,000 factory workers across a half-dozen plants since late 2016, mostly those involved with the production of passenger cars. There are plans to spend $300 million to re-tool the plant to produce a new 2019-2020 Cadillac crossover.

According to United Auto Workers 1853 Chairman Mike Herron said. “We have been told we will be having a line reduction, meaning we will have fewer cars coming through the assembly line than usual. That’s the extraordinary thing about this business one minute, you’re working seven days a week, up to 12 hours a day, with all hands on deck. The next minute, it’s back to five days and 40 hours.”

Published reports put other vehicles on the chopping block in the near future. Since the United Autoworkers acquired a chunk of General Motors ownership under an arrangement during the Obama administration, they appear to have a conflict of interest in maximizing profits and keeping their members gainfully employed.

It is another reason for individuals to develop multiple independent sources of income and to be prepared for turbulent times.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?