Headcount reduction looms at TiVo

[GBL]

http://investor.tivo.com/secfiling.cfm?filingID=1193125-08-238568

On November 18, 2008, we commenced a plan to reduce our operational expenses, primarily through a reduction in headcount, as we manage through the challenges presented by a difficult economic climate and a rapidly evolving retail consumer market.

We expect to incur pre-tax charges of approximately $1 million, primarily for employee-related severance benefits and out-placement costs. We expect to record these charges in the fourth quarter of fiscal year 2009 ending January 31, 2009. Substantially all of these charges will result in cash expenditures.

:(

[haragsdale]

Doesn't sound very worrisome. How many heads can a charge of $1 million possibly cover?

[jlb]

Never a fun time. I just hope Jerry, Stephen, and our own TiVoBabe, Shanan, survive.

[dolphin]

Please .. get rid of the guy who puts ads all over my Tivo interface. Especially the Landrover guy.

[Kablemodem]

Don't worry, the people let go can get jobs at Domino's.

[Kablemodem]

Please .. get rid of the guy who puts ads all over my Tivo interface. Especially the Landrover guy.

If it weren't for those ads the number laid off would probably be higher.

[samo]

Headcount. Could they use the word that wouldn't threat people like cattle?
I guess board of directors and CEO need some money for the performance bonuses.

[MichaelK]

one of my favorites in the genre of "headcount" is "redeployment"- i guess if you count getting deployed to the unemployment line that's accurate but most people wouldn't interpret it that way.

I'll preface by saying I own my own business, thing governent doesnt do anything efficiently, and so I'm all about capitalism.
That said I dont know in tivo's case what the fat cats up top make but it gets under my skin in general when ceo's making millions and millions decide to fire people making tens of thousands. the CEO got the company into the mess it is- wouldn't it be more efficent to fire that boob and let the 100 people at the bottom who actually do work each day keep their jobs???!!!???


Tivo isn't exactly innovating at breakneck speed so throwing a pile of engineers to the curb isn't going to help speed up improvements or anything....

[lofar]

Doubt it would be engineers. More likely, customer service reps and tech support. To tivo's credit their tech support and customer service is spectacular and almost always I have gotten in touch with an agent nearly instantly. This is what will likely go away, we'll start to have to wait 5-10+ minutes on hold just like pretty much everywhere else. Or maybe they'll outsource it all to india like everyone else, god help us if they do.

[JacksTiVo]

Doesn't sound very worrisome. How many heads can a charge of $1 million possibly cover?Depends on what the severance package would entail.

Since they did not identify the annual savings as a result of the personnel reductions it would be hard to estimate the number of people involved. A rule of thumb is that each person reduced saves about $100k in salary and benefits.

[MichaelK]

Doubt it would be engineers. More likely, customer service reps and tech support. To tivo's credit their tech support and customer service is spectacular and almost always I have gotten in touch with an agent nearly instantly. This is what will likely go away, we'll start to have to wait 5-10+ minutes on hold just like pretty much everywhere else. Or maybe they'll outsource it all to india like everyone else, god help us if they do.

not certain but i beleive the bulk of those people are and always were outsourced.

[samo]

Engineers are always first to go. Management always protects sales and marketing at expense of people who actually work.
The smart thing for TiVo to do would be to get rid of marketing department altogether - they have been a disaster from the day one. But management never does smart things, this is why they get millions in bonuses.

[slowbiscuit]

What a load of BS.

[MichaelK]

Engineers are always first to go. Management always protects sales and marketing at expense of people who actually work.
The smart thing for TiVo to do would be to get rid of marketing department altogether - they have been a disaster from the day one. But management never does smart things, this is why they get millions in bonuses.


I work for a variety of clients- some pharma. My favorite example of the above is one time there was a brawl between sales/marketing and the scientists in a building- some silly issue like who got better parking spots or something. The sales director real nastily said "if it wasn't for MY people this company would make no money and none of you (meaning the scientists) would have a job" as if the scientists were some trash- to which the Director of R&D replied "without the drugs WE develop you would have nothing to sell". I'd say the R&D guy won that argument. BUT the higher ups didn't see it that way and scientists were pushed aside for the sales people.

[HiDefGator]

I think you could make the argument that the engineers at Tivo are the only ones that are working. Sales and marketing clearly aren't.

[mikeyts]

The companies I've worked for have started work force reductions with factory workers, low level business people and restructuring of middle management. Engineers get RIF'd, but the only way that can be done is by cancelling products under development or moving their introduction out (move a product out far enough and you may as well cancel it).