NO LOVE AT SOLAR CITY (ACQUISITION/MERGER)
SolarCity has notified the State of California’s Employment Development Department that it will be laying off 141 people at its Roseville, California as the company continues to integrate its operations into parent corporation Tesla, Inc. The jobs affected include middle management positions like inside sales directors, regional sales managers, and a regional vice president. Some functions like information technology, customer account management, and inside sales will be moved to other locations. Published reports suggested that SolarCity used aggressive sales tactics and may have been in serious financial trouble when it was acquired by Tesla.
suggested that SolarCity used aggressive sales tactics and may have been in serious financial trouble when it was acquired by Tesla. To be noted, Solar City co-founder Lyndon Rive who served as the CEO until 2017 and his brother Peter Rive are the cousins of Tesla honcho Elon Musk. The solar industry is under extreme price pressure from Chinese solar panels and installations have been dropping in recent times.
NO LOVE AT ANGIE’S LIST (ACQUISITION/MERGER)
In order to eliminate duplicative positions, Angie’s List will be laying off 230 employees in their Indianapolis, Indiana headquarters as part of its anticipated merger with HomeAdvisor. Approximately 70 sales employees were released earlier. Look for further cuts as billionaire Barry Diller’s ruthless cost cutting team continues to “optimize” the acquired organization. IAC’s HomeAdvisor and Angie’s List will be rolled into a new publicly-traded company, to be called ANGI Homeservices Inc., and which may be up-valued by investors due to its size and leading industry position.
NO LOVE AT ELI LILY (RESTRUCTURING)
Major pharmaceutical giant Eli Lily has announced that it will be laying off approximately 8% (3,500) employees in a massive restructuring and redeployment of savings in other profitable areas. One reason for the restructuring is the loss of billions in sales of patented drugs such as the erectile dysfunction drug Cialis.
NO LOVE AT NIKE (RESTRUCTURING)
Hear that “swoosh,” it is the sound of 745 jobs leaving Nike, Inc. as part of its massive restructuring efforts announced previously. Marc Bohn, a Nike vice president, informed the authorities that, “In June 2017, we announced that we will be shifting to the Consumer Direct Offense, a new company alignment that allows Nike to better serve the consumer personally, at scale." As part of that restructuring, Nike undertook workforce reductions in July and is now implementing an additional round of workforce separations.”
NO LOVE AT ANHEUSER BUSCH (RESTRUCTURING)
Major brewer Anheuser Busch, a division of AB InBev, is laying off approximately 400 jobs related to its “The High End” product line. According to management, Anheuser-Busch is rethinking their “High End” business model and may be consolidating sales and operations to promote efficiencies.
NO LOVE AT CINTAS (MERGER/ACQUISITION)
Cintas Corporation, the largest uniform rental company, has notified the state of Minnesota that it will lay off 232 people in the restructuring process to eliminate duplicative positions in their purchase of G&K Services, Inc.