Anyone else get the impression from comments in investor forums, etc. the actions being taken now were already planned but are just being accelerated due to COVID?
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All are partially right. The signs were there in the summer of 2019 but wishful thinking mostly prevailed in Dallas resulting in only small cuts. By the end of 2019 it was clear that the situation was serious, the double the earnings plan was just a pipe dream and, as a result, cuts were initiated. My management has communicated all these in forums (I know, most senior managers prefer to present a rosy picture; some are more candid). The programs with acronyms started before and they were initially intended to have longer term transition. Now likely they are accelerated. Of course Covid changed everything but - again - Dallas woke up only in the summer. PIPs and PILs were decided early in the year - pre Covid. But the bad 2Q results - known since May - resulted in the HC reduction communicates at the analyst call by NC.
It is pretty obvious that this corporation has a delayed response - not now, always - and this is (was) by design. Our business was long term. Unfortunately it is not anymore!
Yes because in January they cut the budget severely, restricted all travel and catering, told everyone to start looking at cost saving opportunities. Also overheard an exec. admin say that top planners made a huge mistake and now we all have to suffer. She was upset about no more lunch meetings/catering/entertaining etc.
Impression? Senior management has flat out said in town halls that covid accelerated this. It was already needed long term.
HW3 was certainly started last year - it may just cut deeper than originally imagined.
Hates to disagree.
The internal events were previously planned, with some hesitation.
Nature, once again, helps the company out.
Full-bore, straight ahead.
Almost none of the moves made were planned. Just 3 months ago management came to terms that the demand shock won’t be short lived.
You can tell which ones were planned vs. knee jerk by how well or poorly they were communicated