Nobody is going to want v6, because it will be bug laden. When you let go of so many top industry-specialized engineers there is no longer institutional memory, so bug fixing will be non-existent.
I suspect the reason for the layoff is in part that the executive team needs to make their numbers in order to get the board approved bonuses for year end.
Greenfield is probably thinking: "If I let go of 200 people, I will make the target numbers and receive my bonus compensation."
Arnold and Greenfield have no idea what they are doing with the company. They were brought in to sell it, and find themselves in a position were the company needs to be managed. They do not have the leadership or experience needed to manage the company. The stock price is a reflection of this. They can blame it on hard times, but Avid's position in the marketplace has really never been stronger. What editor are they competing against? Final Cut?
Greenfield and Arnold do not understand that it is the video editor that allows them to sell storage and other systems and services. MC is not going to make as much money as storage and services, so just looking at the books, it might apear that MC resources should be cut.
In a few more years Adobe is likely to replace Avid unless Avid can get it's act together. It can only get it's act together if it looses the current executive team.
The real problem is that the executive team believes that they are smarter than they actually are. They have forgotten the basics and surrounded themselves with yes men.
--- In Avid-L2@yahoogroups.com, "suganya.sockalingam" <suganya.sockalingam@...> wrote:
>
> >
> > At $6.37 the company has to be worth buying for parts alone. :-(
> >
>
> Layoffs can be expensed so doing it now makes it easier to sell. And, $6 is sure cheaper than $20 which is when I think they last tried to sell the Co. But what are they selling?
>
> If it is the MC, then a buyer would want the engineers, yet Avid seems to have laid them off. (Which raises the question WHO is building V6?)
>
> Keeping marketing may mean they will take the Liquid path. Once finished, they layoff the engineers and simply sell V6 as long as they can. Since I think the vast majority of sales are to the installed base -- they need only a few marketing folks. (PR is out-sourced.)
>
> I'll bet the company could run on less than a 100 people. In fact, under 50 would do it.
>
> Then Avid joins nearly every other NLE as I don't think anyone will buy the code.
>
> Steve
>
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