Thread regarding Extreme Networks Inc. layoffs

A sinking ship 4/15/2020

4/15/20

Quarterly results are missed quarter after quarter, so regardless of the virus, Extreme was going to miss targets/expectations anyway. There’s always an excuse. Tariffs, supply chain, mergers, growing pains etc.

(4/15 11:30am- day after layoffs) Stocks are down 9% even after a 12% reduction in force (that’s what investors think of EXTR). Now everyone is working with fewer resources. Inside sales, Business Development and GTAC are all struggling, Sales Engineers are supporting multiple account managers, territories are too large to be proactive, managers have 10+ reports.

There hasn’t been any focus on the wired business since the Aerohive acquisition, 7/2019. It’s all on wireless. Extreme is ignoring the core business and if the wireless revenue/subscription models don’t ramp up soon, there’s going to be more trouble. Aerohive wireless is barely selling – at least to new customers.

Though I feel it’s a better solution, the wireless subscription model is grossly overpriced, and the customers are noticing. See last bullet.

Senior management is now bringing in Cisco Management and sales reps, hoping to fix the problem. Extreme Networks doesn’t have two distinct advantages that Cisco has; brand recognition and a functioning partner program. We’ll see how they do.

Sales pipelines are grossly exaggerated at the direction of management and sales operations, to keep upper management off their backs, or maybe to “cook the books”.

The only rational for the RIF’s is lower operating costs for a quick sale, Dell is always the rumor. The way the stock is trending, perhaps it will be a good deal in the months to come.

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Post ID: @OP+14unXf8g

12 replies (most recent on top)

Well done...Appoininting Joe V. as the new CRO...a lot of air will be poluted ...he seems to be proud to flew 5 million air miles, or a least gained them....This will not help to get this company back on track...

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Post ID: @1Hjmt+14unXf8g

Now this Guy Nabil was named CTO.... in this context....just name him the captian of a ship which had an issue with some big ice cube back in 1912

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Post ID: @1ngzf+14unXf8g

Now this company is going a wrong way again...They are now introducing "Sales Playbooks" , which are a top down approach...Well, one size does not fit everyone. The worth thing is, that they now are moving people into teritorry only roles, which used to cover a special part of the portfolio very successful . Those customers are at rsik then, when they figure out, that their Point of contact is not theirs any more...People buy from people and the role of a trusted advisor is treated as a piece of junk. Good Night...Hope the Mgmt will wake up early enough to adjust that wrong direction

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Post ID: @1ficz+14unXf8g

I think Extreme strategy is simple. Get rid of all old leadership positions with new younger innovative leaders. Old leadership seems to have a strangle hold on the remainder of the company. From what I’ve heard is that they want to dissolve employees who have long tenure because they don’t want anyone talking bad about leadership and management of Extreme Networks. I find that appalling to those who have remained there from Cabletron/Enterasys acquisition, they have the longest tenure in the company. I realize leadership has focused on not upselling their old employees, keeping them pigeon holed into their positions as there are no opportunities to advance on a dying ship.

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Post ID: @fgas+14unXf8g

Enterasys was not bought because of the wired business. Customer base and management, that was the only thing of value
Unfortunately these old Cabletron guys got too much space in the company and played political games and disgusted in their ignorance everyone who could be dangerous for you (see WiNG)

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Post ID: @cbad+14unXf8g

I disagree with the Enterasys leadership comment. Very few people from the Enterasys days are (a) either in leadership roles or (b) have any roles in company leadership at all. Pretty much every single decision maker in a leadership position since the Brocade acquisition has either been from Brocade or Aerohive.

The only people with job security these days are the ones who have to create and revise the Org Charts.

There is a reorganization every two weeks, and pretty much everyone at the top of the food chain has anything to do with the Enterasys wired business, which was why Extreme bought them in the first place (along with their software management model) and how they originally approached the $1B mark. I think it's clear that the new business model is aimed squarely at smaller businesses who do not want on-prem architecture or their own IT model - it seems like management is forgetting that all businesses, cloud or not, still need local wired infrastructure and hardware. I don't think Extreme will ever see $1B again.

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Post ID: @cqnr+14unXf8g

As long as we have our current board, CEO and executive team in place we will be stuck in this cycle of acquisition, layoff, acquisition, layoff. The CEO is not a technology expert and follows the lead of his cronies from Enterasys. The problem is not the new leaders/employees from companies like Cisco, Brocade, Aerohive and etc it is the Enterasys leadership that has somehow taken over what was once a pretty good technology company. Many of the long time employees from Enterasys have their roots in Cabletron and do have real experience as leaders in the technology market. Just look at their company history and you will see poor mgmt for the last the 20 years.

We need fresh blood that can redirect the company and force the long time Enterasys employees out of their positions influence. I do not trust the current team and honestly I am tired of the cheerleading which we all see through. It is time to refresh this whole leadership team starting with the Enterasys mgrs and above.

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Post ID: @9iva+14unXf8g

Many reps are not tracking to make their quotas this fiscal year, less than 75%. Quotas were set high, and you can’t just “wish” the business to come in, you have to invest in business development, effective marketing campaigns and improving the partner program, none of which is happening. Everyone expects a big Fiscal Q4 to get their number, but with the pandemic along with shipping restrictions in the EU, Q4 should be a tough one for Extreme. A recent article stated the recent layoffs weren’t due to the virus, I guess Extreme is saving that excuse for next Quarter.

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Post ID: @4dru+14unXf8g

I knew Nabil at Brocade from his SE days. Ambitious, ruthless, back stabbing, manipulative, cunning, dishonest and managing-up is how most described him even then. Destroyed many a people's careers and won the trust of clueless Brocade management team who initially enabled him. If you think he is your friend, think twice. If you think you are in his cross hairs, get out before you are pushed out.

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Post ID: @1pkk+14unXf8g

I knew Nabil from Brocade. Smart guy, but he sells snake oil. We had a private internal meeting with Field Sales/SEs and Prod. Management at Brocade shortly before we went over to Extreme (the deal had already been announced at that point). We had a mountain of problems with the EVPN feature set on the VDXs that we absolutely had to address. He brushed them all off, with zero plan to rectify anything. He just gave us an admonition to sell what we had, even though it would k–l our reputation and credibility that we fought for years to build. I knew at that point I had to get out of dodge. It was serendipitous that the afternoon of that meeting I got a LinkedIn message from a recruiter that ended up being my next role. I'm super lucky that I got out right before I would have moved to Extreme.

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Post ID: @llf+14unXf8g

Nabil came from Brocade, not AeroHive.

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Post ID: @mgy+14unXf8g

To further that point, there are very few people who support this new cloud-based all-or-nothing strategy. Those that do are in upper management and the ones driving it. Nabil Bukhari from Aerohive is proving to so caustic, narcissistic and degrading to everyone in every meeting, call, and presentation that the majority of people have tuned him out. I'm not sure how morally lifting an employee can feel when they are told that if they don't agree with something, that "there's the door." It seems lately that people are being shown the door whether they like it or not, regardless. Internally, I feel that there is a very low level of confidence in this company from it's own remaining employees and in its "vision" and "leadership." Given the last round of layoffs, it is pretty clear that they are putting all their chips into a product portfolio that has very little chance of succeeding. I guess as shareholders, it's a long wait and see.

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Post ID: @gns+14unXf8g

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