NO LOVE AT SEAGATE TECHNOLOGY

 Am I Next? Seagate Technology Job Loss Layoff

On July 11, 2016, the headline in a local business journal read, “Seagate soars as it boosts job-cutting plan fourfold, gives improved outlook.” Seagate Technology CEO Stephen Luczo announced that the company was planning to cut 6,500 jobs or about 14 percent of its workforce. 

Fast forward to July 25, 2017, and we find an announcement in the same business journal that Seagate Technology CEO Stephen Luczo is stepping down as the company’s reported earnings significantly missed Wall Street expectations. As an aside, the company announced that it would cut 600 jobs. Luczo will be retaining his position as Seagate’s Chairman.

Luczo explained in the company’s press release, "It has been an honor and a privilege for me to have served as Seagate's CEO in 16 of the last 20 years. I am grateful to our amazing employees, customers, suppliers, and shareholders. I am excited about our future and I look forward to working with Dave in my new role as executive chairman at Seagate." In the same release, COO Dave Mosley who will replace Luczo as Seagate’s CEO, said, "I am honored to lead Seagate into the next era of leadership in the storage technology market and I am excited about the opportunities ahead for the Company. Seagate has a critical role in storing and securing the world's data and I am proud of our tremendous global employee organization that works every day to support that effort.”

The reason given for the reduction-in-force was, “drop in sales and profit on higher prices for memory chips, and fluctuations in demand for its products.”

People are losing their jobs as economic conditions change and executives seek to restore profitability and regain Wall Street’s favor by reducing personnel costs. 
Are you asking yourself, Am I Next?

NO LOVE AT MOLINA HEALTHCARE

 Am I Next? Molina Healthcare 1,400 employees to be laid off.

Following a disastrous expansion into the health care marketplace created by the affordable care act, Molina Healthcare appears to be restructuring its operation for changing times. The company’s original leadership, brothers Mario Molina, CEO, and John Molina, CFO, were ousted from the company following the loss of $91 million in the fourth quarter of 2016 and replaced by Chief Accounting Officer Joe White who will act as the interim CEO and CFO.

The plans to lay off 1,400 employees, dubbed “Project Nickel,” are being formulated to improve the 2018 bottom line. The cuts represent an approximate 10% reduction-in-force in corporate employees (6,400) and among the 7,700 who work in supporting Molina’ health plans. 

In a memo to employees, White is quoted as saying, “Moving forward, we must be exceptionally strategic in doing more with less.” One might imagine him to add, nothing personal; it’s just business as these employees will lose their job through no fault of their own.

Another political fiasco in the making will lead to further job losses in the future. 

Another cautionary tale and a reminder to reduce spending and start expanding your contingency fund. 

Are you asking yourself, Am I Next?


WHY TESLA SCARES THE UNIONS

Courtesy of Wired Magazine, we can see how the robotic assembly line is scaring the unions. Robots do not require expensive healthcare, pension contributions, or union shop foremen to supervise the relationship between the company and its employees.

It is not so much that the union's membership is in decline, it is the loss of those massive income flows that allows union executives to benefit from their massive investments. If unions were serious about protecting their members, you would be sure that they would not be welcoming illegal aliens into the country and thus dilute the wage-earning ability of their members. Enjoy the two videos as it is a glimpse of a more automated future.