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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

3444.0. "40% cut in sales & marketing??" by DYOSW8::WILDER (Does virtual reality get swapped?) Fri Oct 14 1994 10:53

    On the way to work this morning, the news on a local radio station
    stated that Digital Equipment has announced more closings and
    reductions, with a 40% cut in sales and marketing. Has anyone heard
    this? I can find no reference anywhere else right now, and I won't see
    the paper until I get home. Can anyone confirm this one way or the
    other??
    
    /jim
    
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3444.1Old newsOFOS02::GINGERRon GingerFri Oct 14 1994 11:435
    A bit late- they laid off 50% of the US field sales and support people
    last August. 
    
    I saw this in the Globe, and its simply an article about the Annual
    Report, reviewing last year.
3444.2POCUS::RICCIARDIBe a graceful Parvenu...Fri Oct 14 1994 13:432
    I heard on Money Line last night that Digital JUST announced more plant
    closings.
3444.3USA Today PARVAX::SCHUSTAKDigital...AndProudOfIt!Fri Oct 14 1994 14:445
    Front page article of the USA Today business section had this ame
    thread, another $1B in restructure costs, and 40% of the headcount
    reductions coming from Sales and Marketing function.
    
    Not a very flattering article.
3444.4remember MostekDPDMAI::EYSTERFluoride&Prozac/NoCavities/No prob!Fri Oct 14 1994 15:089
    "...and remember, it took us a long time to get into this condition,
    it's going to take a long time to get out."
    
    Translation:
    
    "I can't sell all of our assets and fire everyone at once or my stock
    would drop...but I'm working on it!"
    
    					phhhhbbbbbbfffffftttt
3444.5Relax, folksMPGS::ROMANFri Oct 14 1994 15:275
    Globe article said this info came from the annual report.  Thus
    it's not new news.
    
    This is only a test.  Had this been a real emergency ... you
    would have been walked to the nearest exit ...
3444.6old newsGRANMA::MBURKEFri Oct 14 1994 15:3813
    If I remeber correctly -----
    
    It was announced pretty widely back in late Q4 that the SBU, which is
    where most of the sales force resides, would be cut back 40%.  There
    were something like 35,000 people total in the SBU (Systems Business
    Unit) at the time and the projection was that 14,000 would be cut
    over the next 6-12 months with most of them before Jan 1.  Some of this 
    has already happened with the downsizing of the sales force.
    
    The Washington Post also carried a short 3-4 liner this morning on
    another $1B in restructuring and additional cuts and closings but it
    also referred back to the annual report.  
         
3444.7AIMHI::TLAPOINTEFri Oct 14 1994 16:2817
    re: .6
    
    I think most of the remaining sales force resides in the ABU.  The ABU
    has the "field reps" assigned to Digital's largest accounts.  There may
    be further cuts in this area but the numbers will be small compared to
    what I've read regarding the proposed cuts in the SBU.  The SBU,
    which supports the remaining installed base has only a small amount of
    "reps".  I beleive of the 35,000 people that make up the SBU,
    marketing, engineering, administration and manufacturing take up the
    bulk.
    
    Of the 14,000 even if we subtract the aproximate 1,000 reps they cut in 
    the summer that still leaves a significant reduction of employees.  I
    haven't heard if this plan has been fully executed or if it is being
    completed gradually over the months left in the calendar year,
    regardless there isn't enough "S" coded folks left to make the number
    up.
3444.8SF too!JULIET::THOMPSON_SAFri Oct 14 1994 17:495
    The San Francisco Radio Stations also announced cuts this morning and
    a $1 Billion restructuring charge.  This is supposed to be sales and
    marketing.
    
    
3444.9QUARK::LIONELFree advice is worth every centFri Oct 14 1994 18:054
I think these are all coming from a Reuters news story that was based on
the annual report, not a new announcement.

					Steve
3444.10Waiting 'till December again?ICS::BEANAttila the Hun was a LIBERAL!Sun Oct 16 1994 00:121
    
3444.11Don't worry about "media trash"ODIXIE::GARAVANOMon Oct 17 1994 20:462
    There are only about 1000 sales people left. Wouldn't give this recent
    "media attention" much credence.
3444.12HAAG::HAAGRode hard. Put up wet.Mon Oct 17 1994 23:524
    well, what about the sales peoples that are left? i can't figure out
    where this company is on that point. 
    
    gene not_a_sales_rep_but_sympathetic_to_their_cause
3444.13No need to....POBOX::CORSONHigher, and a bit more to the rightTue Oct 18 1994 01:1810
    
    	The sales peoples, Gene, are now "bailing out" of Digital so fast
    we do not need to TSFO them. At two per week per region it won't take
    long to get to 40% less (28.5 weeks by my math and that starts from
    4 July). And each one that bails takes an average budget of $2MM+ with
    them. I personally know of no distributor, or VAR, that is growing
    THEIR business by the amount of sales we are losing.
    	Look for major changes in January as the SLT finally "wises-up".
    
    		the Greyhawk
3444.14HAAG::HAAGRode hard. Put up wet.Tue Oct 18 1994 01:273
    well greyhawk, your "math" matches my experiences. the question i have
    is what is this company doing to retain its experienced sales peoples?
    ah...never mind.
3444.15The REAL excitment is just beginningPOBOX::CORSONHigher, and a bit more to the rightTue Oct 18 1994 21:308
    Unfortunately the answer is nothing. Sales peoples at Digital are now
    classified as mushrooms, and treated accordingly. But we is mushrooms
    with brains, and that makes us a higher phylum. Remember we is closest
    to the ground, etc.
    
    Stay tuned, the fun is just beginning.
    
    		the Greyhawk
3444.16Management, TooNWD002::THOMPSOKRKris with a KTue Oct 18 1994 22:312
    Sales management are resigning from the field organization, too.
    
3444.17Get real...ODIXIE::SILVERSdig-it-all, we rent backhoes.Wed Oct 19 1994 01:569
    When will the powers that be realize that the reason the PCBU and the 
    storage BU are profitable BECAUSE those of us in  sales and sales
    support in the ABU and SBU sell their damn products to the customers!
    
    Really, who in corporate america asks their IS department to buy them
    a DECpc or a DEC disk? NOBODY!  Those of us out here in the real world
    are tired of picking up the slack for the rest of the company - sure, 
    y'all build great stuff but somebody has to SELL it!  Telesellers don't
    cold call!  Blowing off steam.... Ds.
3444.18Sales people are realPOBOX::CORSONHigher, and a bit more to the rightWed Oct 19 1994 02:116
    
    	Mr. Silvers, chill! We are sales, me and all my friends here. What
    we are saying is fact. You said so yourself. What inquiring minds want
    to know is   who is listening?
    
    		the Greyhawk
3444.19Who is profitable?CHEFS::PARRYDOld dogs know all the tricksWed Oct 19 1994 07:544
    Re. .17
    
    Who says PCBU or Storage are/were profitable?  Truth is nobody knows. 
    The systems are too screwed up.
3444.20I'm a waitin thar.......rabbit!MPGS::CWHITEParrot_TrooperWed Oct 19 1994 10:2418
    From what I hear, the PCBU 'AINT'!!!!!!!  Only reason for the good
    press
    is that they made the numbers.  That don't make em profitable, they
    just made the numners.   From what I hear, they are still not making
    profit.  And yes the systems are screwed up. Enrico has stated that
    they will CHANGE the systems so they aren't screwed up, but that will
    probably take more time than they have.
    
    Greyhawk, I sure hope your right......I'd LOVE to see 'some of the
    management' in this company get their come-up-ance.  It's about TIME!
    But part of the problem is that some management have seen this coming,
    and demoted themselves to I/C (at management pay) and shove a workerbee
    out the door. What does that do? It get's one less headcount, but
    cost's more to get the job done.
    
    The Ethics group should be swamped with work these days........
    
    p/t
3444.22ref .21NQOPS::APRILXtra Lame Triple OwnerWed Oct 19 1994 11:352
	Whatever this guy/gal is taking in the morning ... I want some too !
3444.23Me, too....POBOX::CORSONHigher, and a bit more to the rightWed Oct 19 1994 15:185
    
    	Hey, Tex are you sending .21 Prozac each and every day? Please
    double my dosage immediately.
    
    		the Greyhawk
3444.24true hallucinationsSTAR::PRAETORIUSwhat does the elephant need?Wed Oct 19 1994 15:397
re .21...23:

     It could be a Dr. Bronners product.  That, or a surfeit of slack.

     Have you seen Cats?

     Anyway, I like it.  I think it's High Art.
3444.25Form 246A (available in VTX) is for raising your dosages...use appropriate channelsDPDMAI::EYSTERFluoride&Prozac/NoCavities/No prob!Wed Oct 19 1994 21:0511
>    Hey, Tex are you sending .21 Prozac each and every day? Please
>    double my dosage immediately.
>    
>    		the Greyhawk
    
    I've been in charge of the Digital Prozac Distribution Organization
    (internally referred to as DiPpy DO) for just a month ("Happy Digits"
    is our motto).  We're checking Mr. Newton's lot numbers and dosage
    recommendations as we speak...
    
    								Tex