Thread regarding DST Systems layoffs

Spot on, regarding comment “Stone says they've achieved $265M of their target $300M synergies, for everyone here, that means $45M in cost cutting to come, possibly via layoffs. That'd be 450 souls. Bottom line here; more layoffs definitly possible.”

I hear management may be the next layoff targets. It falls on their shoulders if profits are not as high as anticipated or as high as wanted. I hear the DSTPS IT management is not doing a great job. Rumor is their largest customer is unhappy and two of the other large customers are leaving, regardless of the story that management is trying to put out there.

Time will tell

Aha!

Analyst:

Can you just give us a couple of the big buckets that are in the $35 million because you clearly saying 2021, just wondering what kind of big projects, there are still left? And then any stones you haven't turnover yet? Any areas where we you haven't really looked much detail yet that we should be thinking about?

Two responses:

The two -- the big areas for us. Right, IT and IT spending ... And then we're very focused on productivity and productivity pickups

we had two enormous data centers, one in outside of Kansas City and one outside of outside of St. Louis. And we also have one obviously in New York town Heights here in New York. And I think our ability to begin to lever that data processing capability to sell it. I think it's pretty valuable and people are interested.

Sounds like another layoff is a sure thing.

Stone:

we are also implementing and investing in the growth of these businesses DST has expanded their sales force across the organizations and have had some notable success with workflow product AWD and our healthcare business was an expanding sales pipeline.

Apparently that means hiring new sales execs; he seems really confident about closing a lot of deals this year:

We always had the earnings we had enough cash in which to invest in our sales and marketing organizations who really start to generate organic revenue growth and I think that's what's going to happen , it's just, is as you know the getting the close

Really odd when companies do this; what, do they really think the former sales staff was that incompetent? They think they can wave a magic wand and close deals "with the right people"? I've never seen replacing the sales org work.

We have just recruited another topic executive Forest Denham in Kansas City, Rob Coolitz, who's going to run our are part of our healthcare business

I haven't seen or heard these names mentioned internally yet.

Analyst getting the meat we care about:

Right. And so you're -- you still feel confident though is that the cost reduction at DST are not impeding your ability to re-accelerate the top line?

Asking flat out, did layoffs hurt? Response:

It's improving it.

Stone says they've achieved $265M of their target $300M synergies, for everyone here, that means $45M in cost cutting to come, possibly via layoffs. That'd be 450 souls. Bottom line here; more layoffs definitly possible.

The sad part is the hurt is only begining. Large successful companies get that way by providing innovative services or products. Like every established company the innovation fade's over time. Stone is making a good attemp to keep it going by aquiring other companies to gain the innovations they provide. The only flaw in his plan is his disregard for people. Cutting the innovators you bring onboard using synergies as the reason gets you right back to square one, with a lack of innovation the company slowly dwindle's. Moral will continue to fall and as a direct result so to will organic growth. That is unless the executives at the top realize this and get employees back to being proude of the company they work for.