Recent industry news doing the rounds is from Epic Games, who yesterday publicly shared an email that was sent by Tim Sweeney about laying off 16% of the company.
It’s kind of like my company. We just did layoffs because we missed revenue targets. We were still quite profitable, just not as profitable as we estimated at the beginning of the year, so we need to make cost cuts to keep the profit margins we’re looking for.
I’ve been out of management for a while thank god but I did 11+ years as ops manager and every month we’d have a meeting to go over p&l reports which was full of budgets the owners set without any input, there was one item let just call wrap that we would use 300-700 rolls per month depending on how busy we were, they also wanted me to order minimum 1000 rolls at a time to hit discount break point. So this cost would only be on the report every 2 months right… easy to understand yet every fucking 2 months they’d be like went over budget by almost 100%… I’m like yeah, how much did we spend last month… oh fuck me it was zero, funny that. So after that they wanted one branch to do a single order each month for all 3 state branches, I’m like you’re gonna spend more on freight for no actual saving and they’re like don’t worry it’s in the budget… wtf.
And that was just one line on the p&l out of hundreds, it was the same shit over and over again. Fucking labour costs in a 5 week pay cycle month was great too, like they just split the total labour budget by 12, allocated that to each month and called it a day… and just kept doing it every fucking year and then 2 months every year they’d be scratching their head trying to workout why it’s 15-20% over budget
It’s kind of like my company. We just did layoffs because we missed revenue targets. We were still quite profitable, just not as profitable as we estimated at the beginning of the year, so we need to make cost cuts to keep the profit margins we’re looking for.
I’ve been out of management for a while thank god but I did 11+ years as ops manager and every month we’d have a meeting to go over p&l reports which was full of budgets the owners set without any input, there was one item let just call wrap that we would use 300-700 rolls per month depending on how busy we were, they also wanted me to order minimum 1000 rolls at a time to hit discount break point. So this cost would only be on the report every 2 months right… easy to understand yet every fucking 2 months they’d be like went over budget by almost 100%… I’m like yeah, how much did we spend last month… oh fuck me it was zero, funny that. So after that they wanted one branch to do a single order each month for all 3 state branches, I’m like you’re gonna spend more on freight for no actual saving and they’re like don’t worry it’s in the budget… wtf.
And that was just one line on the p&l out of hundreds, it was the same shit over and over again. Fucking labour costs in a 5 week pay cycle month was great too, like they just split the total labour budget by 12, allocated that to each month and called it a day… and just kept doing it every fucking year and then 2 months every year they’d be scratching their head trying to workout why it’s 15-20% over budget