Patterson layoffs

guess we'll have to wait until June when the usual culling happens. If your manager has stopped looking you in the eye then it's probably time to polish up the resume.

 

It hasn't made as big a splash as when they made the big cuts last year, but they have been quietly reducing the number of equipment reps nationally as well. Probably about a 25% reduction and there are some looking to leave because now they are covering huge geographic areas and can't be productive especially with the commission reductions that have been implemented the last couple years.

 

Patterson will undoubtedly cull the heard again and again. Removing the alcoholics who spent a week in jail when they used a vehicle without ignition interlocks, The rep that drove into a building but swears she is only high on endorphins and rice cakes or the one that wore bejeweled rainbow shoes every where taunting co-workers and management to attempt anti-homophobic advice to lose the shoes to gain market share. The reps that worked 12-18 hrs a week for 250+K and were known for their monthly week long vacations from their 400 accounts are known to management and are heading for early retirement or a severance check (if they sign the non-compete) just as soon as the new hire returns form training.
Its not a secret Patterson's competitors are making more with less employees or in Schien's case, making slightly more with more and out performing in stock growth. Patterson's newest venture, finally, infrastructure upgrades (ie software) was too little too late to prop up falling sales from customers lost to better street pricing by competitors, exudus of reps with loyal market share and uncertainty in the company's longevity created by the consistent "market corrections" (drops) in stock price.
The leadership is of the mind 'If you dont like it, get off the bus!" This is a huge and obvious contrast to the Pete Frechette days. So to is S.A.'s consistent robbing of profits to create further useless executive positions, increasing executive bonuses, maintaining dividend growth for stockholders, purchase then prop up failing new business divisions (which they sell at a loss) instead of reinvesting those profits in the one division carrying all.
I see a company exhausting its cash reserves to fix a bad software implementation across all divisions, loss of revenue from said software fail delivering untrackable product and equipment to customers for free, further loss of good reps and customers frustrated by compounding errors in billing and commission computations, to create a perfect storm for a hostile take over or perfectly timed sale to a company in need of distribution and/or technology support. BTW the 2% increase in cost of goods effectively narrowing gross margin and narrowing commissions paid as a result was slick, but not unnoticed. (Your obvious philosophy for a top heavy corporation in action)
Yes Gentlemen, we will be exiting your bus! You don't need to ask us twice. We don't prefer your public transit over our Lexus.

 

I know in the branch I used to work in, it's leaner than lean pickings now. I don't know they could squeeze any more lay offs around there?!

 

Lol......You know of some interesting employees! Believe me, I don't doubt it! Anderson should have remembered he had a pair a long time ago!

 

Can you please expand on the 2% in cost of goods? Is this beyond annual price increases from manufacturers which should translate to a more or less equal increase in street price? I'm still stinging from the associated commission cut when Adec (now Sirona too I assume) was knocked down from Preferred tier 1 exclusive. Thanks.

 

The 2% is an increase across the board for all goods. Not just one product or another, all goods. On the wholesale side. Let that sink in.

 

So even less competitive then before...

 

Hey, how do you guys detail dental chairs and stools. Is it shiny vs matte or plastic vs metal
Do you push certain colors. I assume the area under the curve is discussed a lot
BWAAA HAAAA

 

lol

 

Takes expert level comprehension to decipher that bullshit.

 

So years over, when are the next round of cuts coming? Waiting until June again or before they announce the earnings in a few weeks? I'm voting for June but I'm hoping for next week...

 

Very little or close to nothing to cut in most branches.

 

Like that stopped them last year. Anyone who thinks Patterson made their goals is living in lala land. The Moonshot looked more like a missle launch by North Korea....

 

No, its across the boards on the cost of goods sold. Effectively reducing the margin as its labeled "Admin Cost".
In other words if you had $1 margin and you received 20% of margin in commission that should be .20 cents. With this 2% "Admin Cost" now you get .18 cents. Patterson has effectively cut your pay/restructured your commissions and didn't tell you. There is no increase cost to the customer. Its costing the reps more for the privilege of fixing all the SAP errors in a day and making sure the executive levels get their bonuses.

 

I think it's sad what Anderson, Shorty Guggenheim and Guigino have done to Patterson. I hope the karma bus gets them all.

 

_______________
You should hear how he talks to his family. The one that still calls him once a year.

 

The cuts are not done. This isn't the end of the drive for profits at any cost... The board is tone deaf and will continue to squeeze the field staff until only a skeleton crew remain.