The cold hard fact is the CEO and execs pay lipservice to caring about employees and customers. These are a means to an end, which is "increasing shareholder value". Jerry is an egomaniac, as are most CEOs, and he has too much ego wrapped up in his decision to purchase Compucom, and the shareholders have too much exposure to just walk away. Also, there's Jerry's vision of "Workconomy" So when one division is underperforming, cuts must be made in all divisions, in order to lift shareholder value.
The only division that was really showing any growth was the contracts division, which was also heavily impacted by the cuts. Not sure what the impacts will be in the long-term, but in the short-term, performance will nosedive. Sure, smaller accounts being shuffled off to inside-sales or just left to wither and die is a strategic decision, but the impact of these customers leaving will be felt for some time to come.
The company is in "survival mode". Look at the overall economy. It's growing. Growth in the space occupied by Compucom is all most 10% yoy, and yet Compucom's business is declining. Retail is overall flat or up slightly, and yet Depots retail division is declining compared to 2018. This leaves contracts, which was slightly up, finally gaining traction after the last big reorg in 2017. This latest reorg will reignite customer churn.
It may be thin reassurance, but for we who were just let go, please consider that the overall economy is strong, and unemployment is low. Better for this to happen now, than in 6 months or a year when the economy retracts, and Depot is forced to lay off even more people...and they will be laying off more people. Depot will continue to lose business to Amazon, which will only accelerate in the coming months, and it will lose business to smaller regional players, as they abandon the lower end of their contract customers. Jerry will be gone in a year or less. The board will bring in a merger/acquisition executive to try to find a buyer. More layoffs, and then who knows? Maybe bankruptcy, maybe purchase by an equity firm. Maybe a merger with Staples (which is preparing for an IPO), maybe Amazon acquires.
By this time those who were recently laid off will be enjoying the next phase of their careers, and will be watching this unfold as spectators.