Thread regarding McKesson Corp. layoffs

Short term profit gains at the expense of long term stability, loss of culture and innovation

Try number 2 since the first was deleted for no reason.

iCARE, iLEAD is all smoke and mirrors. Whatever culture is left in McKesson Technology is going to be gone soon.

McK became the company it did by choosing the long stable route over the past two centuries, investing in their employees, building up culture, and putting money into up and coming technologies to drive innovation. Under BT and his hire NF, they have gutted and destroyed the technology group that made McK the company it is today.

The big news bombshell that was dropped? D-mn near all of MT is being outsourced, save a couple pockets being retained for governance, strategy, and architecture. Those being moved to MSP during the short term transition period are given a exit package that has a retaining bonus and severance tied to the employee making it to Nov 11th cutover date. If they leave or are termed prior they will forfeit the package. iCare for the win!

Companies that transition to MSP's end up bringing it back after a few years. Service suffers and innovation will be all but non-existent. The fact is MSP's don't care and aren't invested in the companies success, they just want to get paid, do the bare minimum per the agreement, and MSP employees care even less since they are disconnected from the company success, they get paid regardless, just meet SLA regardless of service quality.

Contrast that to full time employees who on an individual basis get to take pride and ownership into the success of the company. They are directly rewarded for the success of the company. You lose that when you move to an MSP which is why most companies that go the route of an MSP end up seeing the pain brought on by MSP's and end up bringing it back in house.

What is more confusing is what has triggered this move. Most companies that move to an MSP are teetering on the verge of making profit or need to close a gap to make profit, or forecasts show that moving to an MSP will provide some short term boosts to profit margin. McK just had their best year ever, something that can be attributed in large part to the great job MT has done despite the execs slashing IT budgets as the company continues to make larger and larger profits. The executive leadership rewarded MTs contribution by announcing they are outsourcing the large majority of the group that helped enable the success, a move that is not necessary. It is a move solely grounded in squeezing out every bit of profit possible, again a move that is not necessary.

The promises sold by the MSPs to executives rarely pan out and almost always end up being a disaster. Its unfortunate that McK has started down this path. Time will tell how much of an impact we will see from this but its in line with the same mistakes other large companies have made and come to regret.

Any chance the previous CEO and CIO will come out of retirement? Their successors are taking the company down a path that will have a negative lasting impact for years to come. Having been at McK for nearly a decade, it has been a sad sight seeing the downfall of a company who's IT department was a destination like Google, Amazon. It used to draw the best talent around the world, it was one of those companies where people fought to work at, a company people left other companies to go work for. Now it's a sad remnant, the new leadership having gutted the culture, made it toxic, have officially put the final nail in the coffin on whatever remains.

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| 4853 views | | 5 replies (last May 30, 2022)
Post ID: @OP+1gIajSpo

5 replies (most recent on top)

Next FY, it’ll be the next levels anyways. Then flattening the org. Not a hard playbook. Other companies have and NF has done it previously. Easy playbook. Next FY they are coming for you if managed to survive this year. Start planning if you are still at the company for next FY. Get out if you can.

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Post ID: @hlfl+1gIajSpo

English is not my first language, but I will try to say this. The two anonymous authors above may be right at the same time. MT did a good job of trying to support an outdated set of applications, given that they had too much responsibility and too few employees. Which some times lead to long turnover and decrease in quality. This makes me think the layoff was in the works for at least one full year.

Whoever wrote that the 6-month transition period is about preventing much severance pay is probably right. So at this point, as a fired employee trying to get their job done, I don't really care about the blame game or about the success of McK whatsoever. It sucks for dedicated people who found fulfillment in McK and those who have to stay, but I planned to leave anyway, so I'm glad I will get paid for it. My, and most others, top goal now is to go through a 5 month routine like a tontine to get this benefit.

I don't know who needs to hear this, probably no one, but a friendly reminder below:
If you're one of the laid-off employees, use a VPN to post. Don't let them find excuses for early termination or refusal to pay. For the love of Pete, don't post on the McK Network or even search this site.

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Post ID: @5qdp+1gIajSpo

@4pos a.k.a Let's Be Honest

The average fortune 500 company spends between 4-6% of their total expenses on IT. Smaller companies that rises to 9-11% while big companies like McK it's more like 2-3%. The IT budget for McK this past year was around 0.3% of total expenses. Exactly what bloat are you referring to? What siphoning are you referring to? MT's entire budget was fractions of the profit McK made last year. You could pay the budget many times over out of pure profit. Most of the services that MT provides are things MT paid for and comes out of their budget, there's very little in the way of chargebacks. Your mind would be blown if you had a clue how little MT is provided in the way of resources and how much is received as services by the business. We've been working with skeleton crews for years now so I'm confused what BU you are referring to with "huge staff".

I've worked at companies with fractions of the revenue where their IT divisions are just as large, if not larger. McK is as far from bloat in IT as you can get, it's been decimated both with budgets and personnel over the years.

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Post ID: @4lyw+1gIajSpo

Dear Lets Be Honest.....

I've seen the work of the "true technologists" you speak of in your BU, I wouldn't brag if I were you. Please kindly remove your lips from the a$$ of BT, NF, or MM or whatever other corporate shill you are trying to kiss up to. MT has kept McK out of the news, reduced risk and liability for years. If you had any idea of the pure BS applications that get brought to MT to evaluate/assess by the many other BU's to ensure that McK best interests were protected you would be amazed.
Instead of getting on here with your phony apologies to real people who lost their livelihoods, people who were let go on the very day the announcements were made, and people who will be forced to leave their positions in 6 months, many of whom have had long stellar careers with strong performance reviews by their management leaders. Try some some real iCARE values. These were and are real people with real responsibilities and many of whom loved their jobs and what they did. You don't refer to them as "bloat" you arrogant fake a$$ho-e! I'm sure that you will go far with an attitude like yours.

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Post ID: @4nkp+1gIajSpo

Let’s be honest.

The reason McKesson had its best year ever has been due to the pandemic and the great job done by the people in RxTS which is where the true profits have come from lately.

MT is awful. Ask the true technologists responsible for the actual modern SLAs in RXTS and they’ll you a story about how MT has negatively impacted customer relationships, siphoned off profits via massive chargebacks to cover its huge staff, and has no clue how to architect modern solutions. We’re all sorry that people are losing their jobs but to be honest this break is for the best as McK removes the bloat inherited under the previous regime and reinvents itself technologically with BT and NM at the wheel.

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Post ID: @4pos+1gIajSpo

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