Surewest Announces Layoffs About 60 positions, or 7% of the company's workforce A tipster writes in to note that "I heard through the grapevine that Surewest in CA is laying off 7 % of their staff." An announcement to the company's website would certainly appear to confirm that news, the company announcing that they're launching a "restructuring initiative" aimed at reducing the company's workforce by approximately 60 positions. According to the company, that includes seven open/unfilled positions, 45 workers in its Sacramento market and eight workers in the Kansas City region. "As a result of today's announcement, the company anticipates compensation-related cash savings of approximately $1.0 million in 2010, reaching an estimated annual cash savings rate of at least $5.0 million by 2011," says the company.
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  baineschile2600 ways to livePremium
join:2008-05-10
Sterling Heights, MI | Sad Hate to see these people out of work, so that people at the top, and stockholders, can make even more. | |
|  | | | Re: Sad they're not many of those. They're a private company still i believe. | |
| |  natter
join:2000-12-18
Littleton, CO
1 edit | Yea, that is probably the reason....just randomly lay off a bunch of people so others can get more pay. Spot on.
Must be a slow news day. Some guy I talked to in a bathroom at a deli in W. Sac told me they might lay some people off. | |
| | fiberguyMy views are my own.Premium
join:2005-05-20
kudos:3 | said by baineschile:Hate to see these people out of work, so that people at the top, and stockholders, can make even more. Ummm... helloooooo... the economy is WAY in the toilet right now... a lot of people are cutting back on discretionary spending these days... Surewest isn't exactly a HUGE company either.. in Placer County and parts of Sacramento county they are an incumbent.. in many of the fiber fed areas they are an over builder to AT&T and Comcast.. Sacramento has 5 total TV providers in the areas they server. There is Comcast, AT&T U-Verse, Surewest, DirecTV, and DishNetwork. VERY competitive market to say the least. Also, the housing market, job market, and durable goods sales in California in general are down. Housing is still inflated and not moving much at all. Taxes are way high, there is a horrible budget problem in CA, and the price of gas is still among the highest in the nation.
But you think this is about the people at the top and the "stockholders" making more money???? | |
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Lazlow
join:2006-08-07
Saint Louis, MO | Math? Maybe I am missing something but the math looks funny. They are going to save $1.0 million in 2010 or about $16K per layoff employee. That far seems Ok(ish) to me, but look at their forecast by 2011, $5.0 million or $83K per layoff employee. So how do they get from $16K savings (for roughly a half year) to $83k in just one year? Nobody gets that kind of raise in a year (especially in this economy). | |
| | xlimitx
join:2001-12-31
Wilkes Barre, PA | Re: Math? It must be something to do with salary + benefits. | |
| | | fiberguyMy views are my own.Premium
join:2005-05-20
kudos:3 | Re: Math? said by xlimitx:It must be something to do with salary + benefits. It costs about 3 times the employees salary to employ them in total. | |
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| Prespd
join:2004-03-10
Wyoming, MI | It's by calculating partial year payment. The savings only counts on the salary owed after layoff. Let's for arguments sake assume 2 scenarios.
1. Surewest delays the layoffs for say another 30-90 days. People get paid longer. So less savings this year.
2. Surewest is generous and pays a severence, say 2-4 weeks/year worked (I said generous, not crazy). Tack it on to the layoff date= less savings for Surewest.
Combine #1 and #2 and you get a vast difference in year over year savings.
Clip a department and you're looking at losing at least a manager, 2nd tier leader, and 3-5 people underneath. Using a scaling income payment for the manager in the low 6's down to the upper 40's at the lowest level, you average down a bit. I think the 83K is high too, but there are other resource savings like laptops, office crap, software, travel, etc...so that raises the average. Maybe the 83K isn't so crazy and part of the reason they need to restructure? | |
| | | | | Re: Math? I'm sure benefits, like insurance 401k, the employeers side of SS payments and possible yearly bonuses are in that makeing 83k very plausible. | |
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