You know, corporations (like EMC) must think we’re stupid.
I read in eWeek (Â LinkÂ ) that EMC is going to kick 1,250 people out on their asses right before the holidays because they failed to make it last quarter.
I guess people are just so much chattle, to be sold off whenever profits need a boost.Â What most people (investors) don’t know, is that kicking 1250 people to the curb does absolutly NOTHING to bolster their bottom line.
They won’t lay off sales people, they are the “bread and butter” of the organization, right?Â And obviously it won’t be the engineers, they are busy busy designing the new product.
That leaves the lowly professional services people.
I’ve been working with and for EMC (directly and indirectly) for close to seven years now.Â I can tell you one thing.Â When they lay-off PS people, they will, with a 100% certainty, have to turn to consultants and partners to get the promised work done.Â Partner companies cost about 3-5 times as much as internal employeesÂ (probably a bit less when you take benefiits into consideration).Â
Eventually, and I can now count 4 times this has happened, they will realize how much money they are spending on partners and consultants and declare a moratorium on partner utilization.Â This requires them to hire the people they laid off, usually at higher salaries (because these same people went to work for the partners when they got laid off) and Â usually only get the lower quality employees back.
(Sorry EMC, but the partners pay better than you do, by a good sized margin.)
They try to entice people to hire in, and in my case specifically, by telling me what a stable place EMC was and how I would be insulated from the ups and downs of the market.
Apparently not – 1,250 people are going to find out how insulated they really are.
Right before Christmas….
Oh – and by the way.Â Some of your customers (me included) take note of how you treat people.Â I know I’m shopping around quotes right now that I might have otherwise gone straight to EMC for.