Thread regarding Avid Technology Inc. layoffs

65% of the workforce is new ….. where did that get us?? Nowhere …. Big Time…

On a rare upbeat note it is nice to once again see women in executive positions and being promoted. This is a welcome change since the days of the prior neanderthal CEO who viewed women as simply servants. Some of the folks on the executive staff are relatively new to the company. Hopefully they can drive change that the Avid old timers who have been in upper management or on the executive staff for years could not. All of the empty hot air from the long time execs did nothing for the company. But somehow they kept their enormous salaried positions while other long time, dedicated, productive employees were given their walking papers. We would have benefited by keeping the long termers who were productive rather than the long term execs who do nothing but blow hot air. Often they don't even bother coming into the office but rather work from the comfort of their home. Heaven forbid they would have to commute like the rest of us.

As proudly stated, and boasted during the verbal presentation of the Avid Technology Q2 2017 Business Update dated August 3, 2017 on Page 8, states 65% of the workforce was replaced. In the dillusionel minds of executive and upper management as well as the board of directors the company has been turned around by this action. Huh?? Where?? How?? Where did this get us? If you live on planet earth it is very evident this action got the organization nowhere. It damaged us significantly. In fact we are in worse shape now. We continue to go nowhere but down as we have the past 7-8 years. Results for the first 6 months of 2018 were worse than 2017. For 2018 - Net Loss $17,455,00 (compared to a net loss of $12,746,00 for the first 6 months of 2017). Net loss per common share negative 42 cents compared to negative 31 cents for 2017. Long term debt is now at $231,000,000 compared to $205,000,000 at the same time period in 2017. Free cash flow – negative $8.7 million. Revenue down $10 million. If we are lucky revenue for the year might hit $400 million (probably not likely). That is a very far cry from the $950 million it once was. This is all public information. You can look it up.

The Executive management staff, the board of directors and the majority of upper management (senior managers and above) tried to make the workforce the ‘fall-guy” for the organizations horrific performance and severe fall from the position of undisputed industry leader. Sorry, the workforce was never ever the issue. Not ever, ever. The employees worked hard to make the company succeed, but the strategic decisions of the executive staff, BOD, CEO’s and upper management turned Avid into an organization scrambling to survive. We have a much worse workforce now because we let go of so many longtime knowledgeable employees who knew this industry inside out from sales, marketing, product management, engineering, support etc etc perspectives. We hardly have that now. Moving a very large number of jobs to “lower cost regions” has gained us nothing and has increased unemployment in the USA. How about having some good old American pride and keep citizens of this great country employed?? Let’s not do that because the greedy executive staff will benefit from huge bonuses if we can throw more people out and move jobs elsewhere. This hasn’t worked. Nothing the management of this organization does works. These days they just blow out polite hot air about how important employees are yet they continue to show dedicated, productive long time employees the door, albeit in small numbers and as quietly as possible.

For the record – the problem has been the horrific strategic direction and execution by management. In particular the board of directors, CEO’s, the executive staff and upper management. The workforce was never, ever to blame.

The executive staff and much of upper management has been a revolving door. There has been re-org after re-org. Executive after executive who were going to turn the ship around and then are suddenly gone.

There was a time when this organization had zero debt and 100’s of millions in the bank. That was when it was run by a CEO who knew exactly what he was doing. But the board of directors forced him out. That was the beginning of the free fall (essentially the end). Nice going by the incompetent BOD.

Expect the Avid Technology Q2 2017 Business Update dated August 3, 2017 to be quickly modified and / or taken down. If that happens you can go to LHJ’s linked-in page where he states Avid was “turned around” (it was turned around alright) by replacing 70% of the staff. Truth is 70% of the staff was let go or forced out but many of those jobs were never back-filled. It was simply layoff an enormous amount of great employees and then move those responsibilities to other countries and try to do those jobs with ½ the amount of people making one-third the salary. It hasn’t worked and has damaged the organization very badly. Our front line customer support is just awful. And that is putting it nicely.

Most believe LJH destroyed Avid (and this includes the people who once bowed down to him at Avid until he was let go, at which point those same worshipers begane bad-mouthing him and blaming hime for the horrendous state of the organization.. He has accused Avid of breaching his employment agreement (stated on page 80 of the 2017 annual report). More egg on the faces of the BOD if he takes us to court. The same people on the executive staff who bowed down to him then started openly condemning him harshly once he was gone. You are no better than he is. You just say empty words now to try and gain the loyalty of the workforce, sorry it doesn’t work. No one believes or respects you. Long-time employees continue to lose their jobs. You have a 20 million fantasy cost reduction initiative and you are going to do this without throwing more people out the door?? Good luck with that. While longtime employees were being laid-off people on the executive staff were hiring and bringing back friends and giving them job titles and salaries they certainly didn’t deserve. Those people have done nothing except laugh every time they get paid (along with all the old time executive staff members and upper management. What a joke. LJH is really laughing now. All the money he was paid was an absolute blunder. The BOD let him run wild for 5-years, finally woke up and fired him for “Workplace Misconduct”. That is putting it mildly.

by
| 2374 views | | 9 replies (last )
Post ID: @OP+V9NKRfw

9 replies (most recent on top)

In April 2017 the executive staff proclaimed the AVID Transformation was complete. As a result profits would come pouring in and the stock would soar (double, triple or quadruple). Even if that happens it will still be a long, long way from the $65 it once was. 5+ quarters later. No profit, the stock price has been stagnant and the corporate debt continues to go in the wrong direction. At least there has been an improvement in the atmosphere thanks to Louis and his unethical, inappropriate misconduct being shown the door. It is hard to buy in to the executive staff sales pitch that we are positioned for a major turnaround when some of them dump stock options. Here is an example:

https://www.sec.gov/Archives/edgar/data/896841/000089684118000124/xslF345X03/wf-form4_153566085674387.xml

This doesn't show strong sentiment or belief with regard to the promised turn-around. Considering the huge salary that way too many Avid "executives" make, why sell a stock destined to increase significantly in the very near future. (would seem you are not a believer). Glad Louis is gone and there have been some improvements in the atmosphere. But this type of action makes one seriously doubt that revenue and profit will come pouring in and the stock price will soar. We need profit. Our loans and debt are way too high. Probably time for more layoffs.

by
|
Post ID: @Njba+V9NKRfw

I was also laid off by this terrible organization. It had become an absolutely awful environment to work in with completely broken morale and direction. I didn't realize just how bad it was until I settled into a new position with an ethical corporation where employees are the highest valued assets, retaining employees is an extremely high priority, management has great credibility and is not condemning and deceitful. Even worse was back-stabbing by co-workers so that they would stay in favor with their manager and not be selected for layoff. Waves of layoffs year after year, after year, after year. Regardless many of us us bought into the "we are getting there and are on the brink of a major turn-around" , like many, I was on-board doing everything I could to ensure the turn-around. And like many, many before and after me I was terminated. Without so much as a thanks for your efforts, we wish you the best and would be happy to provide a positive reference. It was don't let the door hit you in the a$$ on the way out. I didn't realize it at the time but they did me a big favor. Unfortunately I can't say the same for many others who were terminated. Many who had logged 10-20 years or more with the organization were certainly targeted, and if you were 50+ in age the bulls-eye on your back was twice as large. We were all given the list of employees laid off along with job titles and age. When a bunch of us put our heads together it became evident that the list was hardly accurate. Desperate times call for desperate measures. A class-action lawsuit would seem justified. Me, I have moved on, I'm thoroughly enjoying my new position and focused on helping my new employer succeed, and likewise they are doing the same for me and it is very evident they appreciate dedicated productive employees. What a novel idea. Like another posted, I wouldn't go back for a million dollars. Everyone is entitled to their opinion. If you went through what so many of us needlessly did, you would share the same opinion.

by
|
Post ID: @kyzk+V9NKRfw

I respect that everybody has their opinions. However if you feel this strongly, rather than spending time and energy posting anonymously on this website put that energy and passion to good use for Avid and talk to Jeff, or other members of the leadership team. I can personally make sure you get time on Jeff’s calendar to talk. If you know him, you know that he is very open to hearing about concerns and constructive feedback from the team…and wants total transparency. I think you’ll be pleasantly surprised at how much he cares about this company and that he wants to learn about all of the issues/concerns that you are commenting on. I think that you can learn something from him too.

Deb Durkin (not anonymous, a 25 Avid veteran, Jeff’s only EA and one of the assistants who worked at IBC ;-> ).

by
|
Post ID: @foha+V9NKRfw

This is a prime example .... the horrible corporate culture of this organization is the reason unions were born. Was never ever a fan of unions but after seeing how the employees of this organization were treated, dismissed and made the scapegoat while upper management and the executive staff have a grade score of F minus and continue to cash very healthy paychecks, and maintaining the "Buddy System", one then understands why unions were born

by
|
Post ID: @5szr+V9NKRfw

Agreed, IBC has turned into putting up a gawdy front to project an image to try and camouflage an organization which is an absolute mess. We cannot afford the excessive money spent. Considering the financial state of the organization It should have been scaled way back. Two thirds of the Avid employees who attended have no need to be here on vacation to offer nothing but meaningless empty chit chat. At the next company meeting we will hear how successful IBC was. It's only successful if we are closing a significantly large number of business deals generating revenue that far outweighs the money spent for this circus and that isn't and will not happen. When there is a vacation and party ro be had no one wants to be realistic about the return on investment. Which is next to nothing. Apple figured out long ago that they don't need to attend these shows to be a major player and butt kicking competitor in this industry. They certainly have the money to spend. The difference being that they choose to not flush money down the drain. Maybe that is why they are in the financial shape they are in while we are in a financial mess.

by
|
Post ID: @1hpd+V9NKRfw

Adding on — IBC has devolved into a holiday, fun escape for most of our US Corporate office individuals who attend including admins and random excess. Jeff R - please evolve the marketing sensibilities and scale back on the unnecessary, overspent glam Implemented over the past two years at our primary conferences. Our pomp is a turn off to the community as a whole. Help alleviate cutting resources within other functional areas that are much more critical to our bottom line! What are we doing here? This is your time to shine! Why the Avid Amsterdam Army at this point and the garish, Weinstein showboating (how much did we spend on digital signage and video production alone)? Have you not heard, Jeff? We continue to turn our customers and prospects away via sparkly glam versus striving to truly and genuinely demonstrate that we are an attainable, achievable and accessible solution provider. We need to better isolate our segment-specific messaging and solutions versus the “everything” approach. We overwhelm. Glad our new CMO recognizes and wants to help solve these glaring issues.

by
|
Post ID: @1hmg+V9NKRfw

Best thing that ever happened to me was being laid off by this awful corporation. My quality of life improved ten-fold after leaving there. I wouldn't except a job from them if it paid a million dollars. The managers weren't much better than the executives. I've never witnessed a company full of some many hangers-on.

by
|
Post ID: @uwk+V9NKRfw

Yeah, and lets spend a ton of money at IBC (which we don't have) to drink, have great dinners and fun in Amsterdam. Enormous expenses with no return on investment. All of the important Avid people are there. All talking a good game (BTW we all know talk is cheap) as they let folks know how important they are to Avid. While the rest of us are working very hard busting hump to actually deliver products to an unclear, unrealistic and convoluted product roadmap. But we aren't important. Cheers to the important people! Lets keep showing workers the door and send their jobs to other countries.

by
|
Post ID: @zvy+V9NKRfw

SPOT ON OP

thanks for this lenght post

by
|
Post ID: @exu+V9NKRfw

Post a reply

: