Isn't it obvious? More likely announcements will be stifled for the remainder of the year including meeting dates. No surprise at the beginning of 2020 a restructuring will be planned over the next few months. A restructured national meeting late 1st quarter or early 2nd quarter. Restructuring may involve a large reduction of RBD's given Sage currently management top-heavy. The inefficiency stems from a top-heavy management model that is both cumbersome and costly. A hierarchy of managers exacts a hefty tax on any organization. This levy comes in several forms. First, managers add overhead, and as an organization grows, the costs of management rise in both absolute and relative terms. A small organization may have one manager and 10 employees; one with 100,000 employees and the same 1:10 span of control will have 11,111 managers. That’s because an additional 1,111 managers will be needed to manage the managers. In addition, there will be hundreds of employees in management-related functions, such as finance, human resources, and planning. Their job is to keep the organization from collapsing under the weight of its own complexity. Assuming that each manager earns three times the average salary of a first-level employee, direct management costs would account for 33% of the payroll. Any way you cut it, management is expensive.
Signs of a Layoff: The Easy Ones There are numerous signs that a layoff event is coming. Here are a few of monetary-based ones, which are pretty easy to spot from any place in the organization: Budgetary Cuts or Freezes: A company can stop hiring, cut nonessentials severely, freeze spending, put a hold on current projects, and many other things that can indicate that there just isn't that much money in the budget. This type of sign is a little more subtle because it could simply be a strategy change that has nothing to do with layoffs. However, it’s still important to look for. Stock Drop: The easiest way to tell a layoff might be coming is to watch your company’s earnings or stock. Many layoffs are triggered by financial crises so if there are rumors or legitimate proof that your company is having financial issues, you should take notice. Flagship Product Failure: If your company’s most successful product - the product that they make most of their profits on - takes a hit or suddenly falls out of a favor, it can lead to layoffs as the company pivots to other areas. Perks Start to Disappear: Free lunches and other activities start to vanish.
Thanks for the generic list and fear mongering. Yes the stock dropped but none of the other items you mention have occurred.
I posted this in a different thread but I think it’s pretty clear layoffs are coming. The company has barely more than a year of cash left. Zulresso isn’t going to materially change this situation any time soon, and certainly not before the company needs to make decisions about costs. Cloonan said it himself on the last earnings call, don’t expect revenue to kick in until late 2020 (if it even does...). With the lower market cap, the company can only raise a few months more of cash. This is unsustainable. The company will either have to do a big partnership deal with a large upfront cash payment, which I don’t think there is a clear option on the table for that, or cut costs through layoffs. The company will also probably have to run another 217 study which isn’t in current budget, which exacerbates the problem further.
Fear mongering? Wake up you fool! Facts and facts. Now you're sounding like an idiot. Please, do us all a favor and just continue what you are doing. Sage is perfect for you. Don't plan for anything else.
you certainly have it all figured out. You should fly to Boston and educate Jeff Jonas and the board Or run now
I personally don’t think “JJ” is lying. However, all the facts and possible next steps are not yet known. An important discussion with the FDA is one of many things that will be offer more clarity. Things can change very rapidly, and one of those changes could be restructuring. The company lost half of its market valuation. That’s a very big issue. And improving sales of Zulresso won’t offer a more more than a small bandaid, designed for a hangnail. I’m personally going to ride this out, as I’m not risk averse. If you are someone who needs or prefers a bit more certainty, get out there and find something else.
who would’ve ever imagined SAGE would be laying folks off in 2020. It’s a shame for many reasons. Not the least of which is patients not getting a drug that was sorely needed. Best of success with interviews.
Curses to this terrible company for great embellishing how great the opportunity and company was while interviewing people. Worst mistake of my entire career.
