Thread regarding Omnissa layoffs

"Prediction" for the next 6 months

Q2 sales will lack both plan and the latest exec forecasts. Substantially. SVP of sales and several Director / Sr. Directors in sales will finally be fired in August. Not for missing the target, but for missing their own forecasts now several quarters in a row.

ARR in the current quarter will shrink vs end of previous quarter (for the first time). That will be the catalyst for the bigger changes:

KKR will continute to re-shuffle the board to drive more accountability.

CEO still believes that "product is fine, everything else is the problem". He'll be fired, too. Timing just depends on interim and long-term succession plan. Nobody will miss him as he's been over-promising on outside investment / recapitalization / acquisition and under-delivering.

Once that happens, the power center of gravity will shift away from product groups. Don't need as many PMs and engineers if the goal is no longer just growth (which has been embarassingly lacking). PE firms are happy with high profitability / low growth or lower profitability with higher growth (rule of 40). Any combination works for them long term and the company will be reconfigured to set and maintain the direction.

All of this will be disruptive, causing more internal power fights. Good people will leave for better opportunities (which exist for them) why others will be RIF'ed in certain areas. That will leave the company with lower cost, but also understaffed in important areas. That imbalance will prolong recovery time.

In short - long term (18 months+), Omnissa will be fine.
Short term (12-18 months), it's going to get ugly. Opportunities for smart people to navigate the disruption.

You read it here first.


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Post ID: @OP+1kxe5swhw

14 replies (most recent on top)

"What that tell you about the Omnissa CEO's talks about a recapitalizion / pote tial sale / liquidation within 2026?"

They are making it look like Omnissa is being purchased by Google... Wait till people find out they entire thing has been a sham.

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Post ID: @111+1kxe5swhw

"Short term (12-18 months), it's going to get ugly." It hasn't not been ugly.

And what's with this:
Reducing the bonus and calling H1 payment "an advance" on hidden numbers and supposedly "making us whole" in H2, again with hidden numbers. All feels like a scam.

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Post ID: @xw+1kxe5swhw

The new AMER vp is ex-BMC, which is owned by KKR… what’s the play here?

No idea. But notice how long KKR owned BMC. Since 2018. A long time. The spin out of Helix didnt happen until recently, so BMC employees sat on worthless equity for at least 6 years. What that tell you about the Omnissa CEO's talks about a recapitalizion / pote tial sale / liquidation within 2026?

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Post ID: @wf+1kxe5swhw

The new AMER vp is ex-BMC, which is owned by KKR… what’s the play here?

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Post ID: @ry+1kxe5swhw

Easier to can and gaslight ICs for missed targets rather than the incompetent leadership. KKR is as much to blame for not holding them accountable rather than replace the CEO and SVP of sales. They've had plenty of time to see the pattern, which has been downward for multiple quarters.
Until then, expect more churn, missed renewals and missed targets. The c suite are projecting the failure of the business due to lack of "training" instead of looking at themselves in the mirror. Also, the above comment is spot on, the products are complete garbage full of bugs with a complete lack of support for the customer. "Great" leadership or not, still a failing business for the foreseeable future.
This isn't a sinking ship, it's already hit the ice.

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Post ID: @jn+1kxe5swhw

@be Well if he trusts his tribe and is blind to gaps, that's a problem. It might be preference but more likely it's some level of incompetence and KKR needs to intervene.

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Post ID: @bm+1kxe5swhw

@ax ceo is supposed to be the chief of all functions and needs to make the best decisions for the company. Not just favor his "tribe" over others.

The Board needs ro supervise the ceo.

Investors pick the board

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Post ID: @be+1kxe5swhw

@as It's the CEO's job to get his next line of leadership to reach their goals and if someone isn't performing, it's his job to replace them. If he's unwilling or unable then it's his job on the line and then the person he's unwilling to replace gets replaced anyway when a new leader is brought on. It's game theory.

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Post ID: @ax+1kxe5swhw

@ar I think that's why OP implied that the recognition that there may be a product issue can only happen with a new ceo

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Post ID: @as+1kxe5swhw

I’m not sure how clearing out the C Suite or the sales team helps us hit our numbers/goals if the products being sold are garbage.

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Post ID: @ar+1kxe5swhw

@ag McGrath needs to go too. Get rid of all of em.

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Post ID: @aq+1kxe5swhw

New CEO would also swap out head of marketing. Renu has been struggling for a long time and Kelly is a way better option.

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Post ID: @ag+1kxe5swhw

KKR should get a new CEO in before Omnissa ONE in September so that they can travel on site to meet with customers. If they know what they're doing they are vetting candidates right now. Relief may be on the... Horizon (no pun intended).

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Post ID: @ab+1kxe5swhw

KKR should have been feeling out a replacement for Shankar for the last quarter plus. Timing is right (2 years onwards from acquisition) to replace the head of the company if they aren't able to hit growth numbers. They do that and they have a clear path to clean house fully.

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Post ID: @a3+1kxe5swhw

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