BMC Software to layoff 12% workforce, sees $100M saving (825 to 875 jobs)

[UpInArms]

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38453.7034337847-834056581&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- BMC Software Inc. (BMC) said Monday after the closing bell that as a part of its planned restructuring it will reduce its workforce by about 825 to 875 employees, a 12% reduction. The company said the realignment will result in annual savings of about $100 million, although it expects to take a first-quarter pre-tax charge of about $50 million to $60 million. The Houston-based company cut its fourth-quarter revenue forecast to a range of $388 million to $400 million from its previous outlook of $410 million to $425 million. It expects to post between a loss of 1 cent and earnings of 3 cents a share for the period.

...more...

[cthrumatrix]

1. sounds like our "economic recovery" is in full gear.....ask Chimpy

[mhr]

2. Man Bush's Economy Is Accelerating - Negative Growth

Who Would believe it?

And the experts agree!

"Overall, this level of (job) creation represents the worst job performance since the Bureau of Labor Statistics began collecting monthly jobs data in 1939 (at the end of the Great Depression)."

http://www.jobwatch.org /

"In the previous five expansionary economic cycles the average increase in employment over the first 39 months was 10.1%. In the current cycle the increase is 1.5%.

If employment had climbed by 10.1 % since November 2001, we would have added 13.2 million jobs instead of the 1.9 million actually reported. That’s a difference of 11.3 million jobs."

http://www.comstockfunds.com/screenprint.cfm?newsletterid=1165

My Conclusion: The American middle class is fast approaching demise and will need life support to survive!

[mhr]

8. Just Called Randi Rhodes With The Facts Quoted Above!

eom

[TahitiNut]

3. Couldn't happen to a nicer bunch of #$%^%&.

Greedy, self-serving fat-cats.

[kedrys]

4. BMC is well-known for burning through people...

...like a hot knife through butter, but it still sucks for all the newly-unemployed.

[customerserviceguy]

5. Doing the math

when you divide the hundred mil by 875 people, you get just shy of $115K each. That's some pretty expensive talent, there.

[htuttle]

7. It's more complicated than that

$115K each would represent the entire expense of the employer for that employee -- not what the employee made.

For example, the employer's social security contribution for that employee alone would be (figuring...90K ceiling x 7.25%) something like $6500, plus maybe half or more of the employee's health plan (if they have one), plus savings on workers comp insurance, possible 401K adminstration costs /contributions, etc...

Not to mention physical plant savings, like smaller facilities, fewer desks, utility costs, etc...

So I bet those employees' actual salaries would average more like 70K or 80K at most. Probably less. And I doubt it was uniformly distributed (like 2 at $150 and dozens at $30K with others in the middle).

[customerserviceguy]

9. Standard calculation

for employee benefits, taxes, etc, used to be 130% of the annual pay. So, again, doing the math, even with assuming 140% (let's say they were quite generous with perks) makes an average of over $80K. Yes, there were probably people making lower, but that means there were those making higher amounts.

Your point is made when it comes to physical plant savings, but sometimes leases still go on, and they don't get more than a few dimes on the dollar for selling unused office equipment.

Maybe 70 or 80 K is not a lot where you live, but in the post-dot-bomb era, it's not bad money for IT these days. I met a guy who works as a programmer for a chain of menswear stores, made nearly $150K a year, and he was frantically putting his own business together, he knew that the gravy train wasn't going to run forever...

[Renew Deal]

6. I remember them.

They were a high flying player for a while. I am not sure if they still are.