5% Job Elimination

5% of 8,500 is 425 jobs potentially eliminated. Clayton will be safe, but my guess is most of these cuts will be in the RTP headquarters which has several highly paid redundant positions. This will contribute significantly to the cost savings target.

 

If Victor is true to his word, then the 5% could comprise employees from Grifols as well as Talecris. So while any job losses are a downer (except for VPs and above), 5% is very low for a large takeover.

 

It is a good start however they are going to need a lot more than 425 highly paid RTP Corp heads to get to their synergy targets. That is only $75-$85M.

 

Hey, I work in Corp RTP and resent the line of thinking that we should be first to go and are overpaid!!!! With two acquisition takeovers and one IPO we have been working ourselves to death. Majority of us could see the writing on the wall for a long time and have been saving up anyway. If something does happen hopefully we can get a nice package and all take a long deserved vacation.

 

Well getting rid of Larry should add another $20 million (or more), so now they are over $100 million in savings. The rest will likely come from increased utilization of intermediate materials to make more products, particularly Gamunex.

 

HQ people do work hard but I do think they are probably going to be hit hard with the 5%. The upper mgt group is definitely a problem. Let's watch all the back stabbing that will start now so that upper mgt can preserve their job, then it works down to the field mgt. Perhaps KK will her take her talent elsewhere- that will save Grifols a lot of money will all her galavanting around the country unnecessarily. Would love to see how much money she spends on travel. Will mgt now be required to live in RTP area?

 

Victor was trying to allay layoff fears with his 5% comment. In reality, once the integration team reviews the redundancies, the number will probably be higher since Grifols needs to rationalize the large debt through major cost savings. The process and those handling the integration will in the end determine the actual number across the whole organization, but nobody should believe it will be low!!

 

Look folks, there is not one Talecris leadership man or woman , except Kuhn, that needs to be ass kicked out the door. What the hell has Rhudy, Lynch, Heerdt, Menchilla, Abelson, Nogales, Perkins, and Petteway done to add value to our group? I say they all need to be released, and with dispatch.

 

I agree, Kuhn is the only one that seems like she belongs (and she knows it) hopefully Grifols gives her a shot if she wants it. The rest have always left me scratching my head a little. You become even more confused when you read some of their Bios. I do except all of them to start turning on each other shortly. It doesn't matter how much they have they always want more.

 

She may be good but she will take her buyout and retire most likely. Doubtful that she would stick around for more than an initial transition.

 

Although the businesses are the same, the leadership culture is different between the two companies. The compensation level alone for top executives is very different. Expect most of the Talecris leadership to leave during the transition. Stern has vanished, and more will eventually follow.

 

How worried does the IVIG team have to be about losing their jobs by the end of summer? I keep laying out scenarios and am getting nervous. Why would they keep a Talecris rep over a Grifols rep????

 

The history of buyouts like this show that the company getting bought always gets killed in layoffs, it will be no different this time. And if you think it is going to be 5%, I got a bridge in New York to sell you.

 

I would love to see a comparison between the two companies of EVP's, SVP's, VP's, Exec Directors, Sr. Directors, Directors and Sr. Managers. We must out number them 3 to 1 in these levels.

 

probably more like 5 to 1, Grifols has a very flat, efficient management structure

 

Are you sure about that? It sounded like they had plenty of inflated titles with the same job function (or similar) at the all employee integration meeting last week. I'm sure Grifols has just as many figureheads as Talecris does/did.

 

US operations is very lean...for instance, coag has one marketing professional as does IVIG...alot of what you saw at the webconference last week included those from Barcelona who will be involved with the integration of the two companies.

 

Exactly - they are going to plug people into the open positions and then Hasta Luego to the rest of y'all - that's spanish AND southern for hit the road jack!

 

Yes, that seems to be the way. Grifols needs to recoop some major dollars. They can't slow production or shut down collection centers - not with Baxter scaring the pants off of everyone with their 'tight market' bullshit.

 

OMG - JUST FIRE KK- SOMEBODY PLEASE FIRE THAT COW