Deep cuts were made at Volt Workforce Solutions and Volt Consulting Group today, leaving one to wonder if a sale might be on the horizon. Volt has continued to falter and lose market share, in spite of them bringing in Michael Dean, as a presumed turnaround CEO. Other staffing firms are enjoying a booming market and large revenue gains, while Volt continues its downward spiral. Clients will lose even more confidence when this news becomes public. If a sale isn't imminent, will Volt survive?
9 replies (most recent on top)
VOLT is a joke and everyone knows it. They have run out of sugar coating.
Same situation as one year ago and Volt is still around! Kudos on not sinking the ship.
Does anyone know what happen on 8-2-17 with the 40 layoffs?
I worked for Volt Consulting office located in Colorado. I will say this was one of the worst environments I have ever worked in. I loved the job and the programs which I handled. The management however, lacked backbone which showed in the performance and structure of the office as a whole. There were those whom worked hard and put forth effort and others whom kissed up to management who barley worked at all. The dynamic of the office was that of a junior high school mean-girl type of work place. Volt also is has a very tight fist when it comes to raises and aligning the pay with their competitors. Auditors would have a hay-day if they went in unannounced as Volt does not keep any of their contractor information under lock and key. Everything from credit checks, social-security, driver's licenses and other personal information is easily accessible for janitors or anyone whom has the bad intentions,
Volt has laid off so much of the machine that produced revenue, that there isn't anyone left to produce. With every cut, they chop more revenue and more ability to perform or turn it around. Cuts can't turn this around, every cut cost revenue, gross margin and any contrition to the bottom line. The latest rounds are certain to cost more clients and revenue. Clearly, they want to sell, question is..... Is there enough left to sell.
The cuts were seemingly done without any thought with the only consideration being the salary savings. No one even bothered to consider pending deals or client relationships. There is going to be a lot of lost and missed business. This has to be prep for a sale.
There is so much going wrong at Volt, that it is hard to pin-point any one cause for their constant struggle. I've watched this company go from pretty good to a disaster in less than 5 years. The SEC investigation, de-listing from NYSE, millions spent on auditors instead of reinvesting in the company, lowest salaries in the industry (except for the published compensation of the executive team), the MSP business doesn't have a global presence and the staffing business seems to have forgotten how to recruit. Beyond that, there is a complete lack of vision from the executive team. I feel sad for those that lost their jobs, and even more sad for the very few who remain.
This has been a long time coming. Volt's mistakes come from years of poor management practices, cronyism and the lack of self-awareness. It doesn't take an Ivy League MBA to realize what generally works to be competitive in the staffing industry, particularly for industry leaders, is far from proprietary and is easily implementable. The core of staffing 'practice' is simple but elusive to those that believe business today should be conducted the way it was in the 1950's, 60's and 70's...i.e. Volt. Most of the high-performers, especially in the leadership ranks, were purged 3 years ago as the COO at the time was directed to cut anyone who did not agree with Ron Kochman and Jim Whitney's grand vision, in exchange for a few months of his own employment and a fat severance. The goal was to drive Volt's stock price up 4 or 5 fold (from it's existing price) by eliminating most customer facing facing roles and creating recruiting hubs that would support clients based on vertical specialties. The idea was to put more emphasis on the fulfillment of orders for Volt's largest clients and cut back on business development for new business, which in Kochman's perspective the "easy" side of the business. Great plan, except when you realize that most of Volt's largest clients were secured on discount pricing that walked when Volt asked for increases. With no new customers and a shrinking client list, more cuts ensued, and when the few high-performers that remained came to the realization that the compensation plans that were created based on books of business when the new strategy was created would not support what was promised, they started leaving. The story is quite sad, but it is what it is. To say that there are no talented people left at Volt is simply not accurate. There are and, if you can find them, you should hire them. They are loyal, which is really the only reason why they would still be working for Volt.
The cuts are massive, from talented executive leadership to revenue generating recruiters. Competitors better be all over this "bucket" of newly available talent.
Does anybody have any insight they're willing to share?