The fox may be in the hen-house.
It appears that whenever an activist investor, yesterday’s Wall Street Gunslingers, purchases a significant stake in a company or assumes a seat on the board, restructuring, and mass layoffs are sure to follow. According to the Wall Street Journal, Nelson Peltz may have won his proxy battle for a seat on the giant consumer goods company Procter & Gamble by the thinnest of vote count margins. Reportedly 43,000 votes out of 2 BILLION votes — a 0.002% margin. Allegedly the proxy battle cost Peltz’s Trian Partners and P&G approximately $100 MILLION – quite a few employees to make up the loss.
A previous story on P&G was not encouraging
The hedge fund boss seeking a seat on Procter & Gamble's board of directors has pushed companies to remove more than 100,000 jobs through layoffs or business unit sales, a review by The Cincinnati Enquirer shows. Peltz has decried P&G's "suffocating bureaucracy" and advocates a "flat organization," but has side-stepped any specifics on potential job cuts. He says he wants to thin P&G's corporate jobs from 10,000 to 1,000 but move an unspecified amount back into business units such as oral care or baby care. Since 2012, P&G has already shed 34,000 jobs through buyouts and business unit sales, a 26% reduction in headcount. <10/4/2017 USA Today>
The handwriting is on the wall, it is up to the P&G employees to react accordingly.