Unfortunately for those studying their P45, it’s all par for the course. The company’s practices aren’t anything new and the bigger a merger, the bigger and more ruthless the corporate axe.
The sorry story began last week when senior Skype executives began to moaning loudly about the way they were treated after Microsoft agreed to fork out.
One executive ran to the papers detailing his displeasure that he had been fired before the deal went through. It meant the company didn’t have to annoy new investors by paying out the full amount of compensation cash, he claimed.
Skype brushed the accusations aside, saying it’s merely a result of “reorganisation” within the company. That’s one way of putting it. Suits at Skype added that the sacked hadn’t been given a lousy deal as they had been paid the stock and cash they had earned.
However, ex-Skype executive, Yee Lee, reckons he’s been conned. His main beef is because, although he had chosen to resign with what he thought was a nice deal on his stock options, Skype had changed the rules – meaning that they’re worthless.
Skype isn’t the first and won’t be the last.
According to a top financial analyst who has been mulling over the finer points with us, the company had to slash to help its new dom Microsoft report better revenues next year.
Our source tells TechEye: “Big companies are notorious for their hiring and firing. The bigger they are the more ruthless they can be. When a consolidation of this scale occurs there’s bound to be – lets say – some underhand dealings, but of course companies ensure they remain in legal boundaries.
“Firing from the top is always something that occurs when two huge entities collide and in this case Microsoft would have wanted its own people in there rather than Skype’s.
“Of course, in this particular case, the axing was done just before the buy out was announced, which I assume was to ensure Microsoft kept looking good and wasn’t in the picture.
“The media is reporting that the employees are disgruntled because Skype wanted to keep the value of employees stock options and yes, they have a good point. As soon as they are ordered to leave the company they lose these benefits, meaning that Microsoft will be able to report higher earnings on its new company next year.
“Of course, this will never be admitted with the company putting down the firings to a lack of positions and the fact that those fired weren’t any good.
“It’s also important to remember that Skype has been sold on and on, hinting that the company may be hiring its staff to help patch up parts of the company and make it “desirable” for the next buyer – sort of like investors buying and selling houses”.
“Once their job is done they are no longer needed in the company.”