I found this mass layoff story to be particularly galling. Here is Bay Area Biz Talk with the details:
Exar Corp. eliminated 120 positions Wednesday, bringing the money losing Fremont semiconductor company's total job cuts for the first quarter under new President and CEO Louis DiNardo to 169.If I was still employed by Exar, I'd be polishing up my resume, that;s for sure. but here's the kicker:
Exar said that the combined cuts amounted to 40 percent of worldwide headcount and would save $21.7 million in annual costs. About 270 employees remain worldwide at Exar, which does contract work for other companies and sells chips and software used in industrial, networking and data storage systems.
DiNardo, who last was a partner at Crosslink Capital but previously was president and COO of Intersil Corp., was appointed CEO in December with a generous salary and stock package following years of significant losses at Exar, which at the time had accumulated a deficit of $236,797,000.Holy crap! This company's debt amounts to almost a million dollars per remaining employee. And yet they went out and paid top dollar to a new CEO so he could lose even more money. Wish they'd paid me instead as I'm pretty sure I could have done that. Fucking brilliant.
The company has lost another $4.73 million since then on revenue of $29.7 million, which was down from $36 million the previous quarter.
Bonus: Sounds to me like this is what Exar is doing if it thinks it is going to be able to get out from under that mountain of debt:
Running a company seems easier with every post like this...
ReplyDeleteThe heads at Exar run the company like the politicians of California run the state budget. So what does Exar have in common with the Titanic, the twin towers of 9/11, the stock market of 2008 and the Lockerbie flight 103?
ReplyDeleteIf your still employed at Exar, start sending resumes out. If you stay you'll join the ranks of the 99'ers with gaps in your employment history which works against you in the employment market place. It's a mathematical certainty that this ship will sink. Jump from this ship onto the Carpathia while you can. The job market is sooooo competative now and your Achilles heel is that your still working which puts you ahaead game.
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