According to this article, when Apollo turned Hostess around, the company had 1200 employees. Hostess USED to have 8000.
Now it makes sense. That's how some of these companies get "revamped" to value them higher at sale than when originally purchased while distressed (bankruptcies, etc.).
From 8000 employees down to 1200.
I don't know. From a fund investor perspective (public pensions, university endowments, etc.), there is money to be made. From the labor perspective, it sounds like survivors of layoffs maybe get pay cuts, benefits cuts and end up taking on the work of two (maybe in some cases even three) people.
I think "transformation" is Orwellian Newspeak for We Will Initiate Multiple Rounds of Head Chopping, pay ourselves a dividend and then exit the investment.
When's the next round? Pray tell.