A lot of companies have started laying off furloughed employees, I'm wondering if we are next...
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What a sh#t show...WOW.
Its sad really how all of this is being handled by the company. I like Staples. I like the work I used to do before being furloughed. Leadership there is really terrible though. No matter which side of the house you are on. In USR they just cut 50% of salary. No ryme or reason to it. From managers to developers based on what? The folks that are 60% are working 50% more than they were and not able to get anything done. Those of us furloughed get little or no communication on status of anything. If it was not for the furloughed people keeping in touch with small nuggets of information that we compile we would be 100% in the dark. The fact is that there are close to 30 million people unemployed now. Staples, along with a lot of other retailers, will not survive the restirctions that have been put in place across the country with minimal consistency. Our bread and butter of BTS will be non existent this year because many schools are planning to stay online only through the end of the year. Retail, as we knew it is over. They will focus on NAD only and the USR employess, if any, that are brought back will be there to go through the process of either closing the majority of stores or reducing them to significantly smaller footprints from the 12k's that are everywhere. P&MS will be profitable and the margin is good so that is probably mostly what will be left.
Looks like a sanity check is needed...
Firstly, Staples will not bounce back into becoming a great company again by buying failing 'mom and pop' office supply companies. The whole industry is failing because consumers and businesses are moving to technology and need fewer and fewer office supplies in their daily lives. That trend won't change - it may stabilize down the road, but won't reverse. It doesn't matter who is running the show, the category is in a terminal state of decline.
Secondly, Staples does not have the scale in other lines of business to compete effectively, with the exception of maybe promotional products. Breakdown FS sales and it really is a combination of smaller categories - break room, snacks, sanitation, etc. There is no market leadership in any these areas and will need investment to build capacity and competencies. As many of you know, there is zero interest in making sizeable investments anywhere in the business. And this is now even more true with covid.
Lastly, SP is a private equity company and the leadership they have installed have clear marching orders - increase profitability, and release value. If you can't increase sales, you need to cut costs. SD and his cadre do not have a history of building businesses - they have a history of cutting costs. Expect to see more real estate sold, cuts to expenses and unfortunately headcount reductions. If the business cannot be sold as one entity, expect to see profitable parts, like promo, to be sold in pieces. The goal is to maximize the owner's return on investment.
If you're okay with this strategy, it makes sense to stay. Many tenured associated should stay as its likely the most secure place for them. But if you have good skills and don't like going through a cycle of perpetual cuts, continued job uncertainty and dealing with unsavoury/incompetent leaders, it's time to at least explore the job market and see what's on offer.
Mom and pop shops buy from Essendant and the likes of the org.
Interesting possibility in @zkd+14WSMayc that Staples might be able to stay solvent longer than 'mom & pop office supply companies', which it could then acquire. Hope so.
But, umm, do 'mom & pop office supply companies' even exist? Never seen one.
And for the real play, we still have a long way to go before staples.com is anywhere comparable to the level of Amazon, in terms of price, digital user experience, shipping. But it's getting there. The free overnight shipping on everything was a great move, IMO. Maybe it cuts into margin but it'll get some revenue.
However, yes: more layoffs must be coming. There's so much fat to trim. Hopefully they will start to see the light about the disastrous offshoring strategy though and retain a core of competent, full-time workforce to see this transition through.
Cut costs ...sales go down. Cut costs ...sales go down. Cut costs ...sales go down. Cut costs sales go down. Staples has been cutting costs for about 15 years now. Anyone see a pattern ? Eventually there will be about 5 people left. 4 accountants and 1 lawyer.
Wait . There’s more . Have to finish with the usual .......ship is sinking ....uh .....find another job and you’ll be happier.....uummmm, be safe out there . There . Done.
Oh wait ....P.S. SP are creepy people who only care about money . Almost forgot that original piece.
If 10% of our customers do not come back then at least 10% of our sales/support can be cut to meet that new level.
The saving grace is that Staples will take over numerous mom & pop office supply companies that are not able to make it. Thus creating the need for more people.
Every weekly update from SD mentions his Q2 goals of continuing to cut costs. We are being told directly that cost cutting is coming. Head count seems like a probable area they will focus on.
And it doesn't have to be strictly furloughed employees, nobody is safe.