Stories solicited from persons who have gone through takeovers or buyouts of long-term employers.
I’ve got somewhere over 20 years with a mid-sized outfit in the energy sector. This afternoon it was announced at a meeting of the local office staff that the company has been bought out 100% by a much larger, indirect competitor. Win for the buyer is some unique technology in one service line, and significant market share in another.
We have been assured that no immediate changes are forthcoming, but they would say that, wouldn’t they? I’ve got what I believe is a good track record and work ethic; on balance, I’m in an age range and skill area known for vulnerability to cost-cutting efforts. Over the next few days I want to assess my chances of still having a job, say, two years from now, and begin some contingency planning. Any comments from Dopers who have found themselves in a similar position are welcome.
Realistically, I have to say that when it comes down to staff from the buyer company vs. staff in the bought-out company, the tie almost always goes to the buyer. If you’re in sales, that is, if you generate revenue, you’re in better shape than if you’re in a “back office” sector like HR or accounting.
Sounds like you just answered your own question. It may be six months, it may be two years, but if someone decides the company can cut costs by eliminating your job, it’s a pretty good bet your job will be eliminated.
I am currently working for my fourth company with the same job title, as each company has been bought out by a larger one. As of April 1 I will be officially assimilated into an international top 50 company. Personally, it hasn’t affected me a lot except in terms of benefits. Each company has something different to offer, and old plans have to be abandoned or rolled over. I have found that the people in centralized positions, such as HR and payroll, are the most at risk for losing their jobs. I’m in a technical position and assigned to specific contracts, so I haven’t been at risk to this point. I hope it continues. I’ll let you know in six months.
I’ve been working for the same “company” for fifteen years. In that time we’ve gone through four significant mergers and takeovers.
Each time, a lot of people were let go, but some survived. The key was this: People who were in positions which overlapped were let go within a few months of the takeover. People in our company who did something not exactly duplicated by anyone in the acquiring company stayed longer. The people who were kept indefinitely were those working on projects that they specifically acquired us to obtain.
The people who survived - those whose role was unique. In my case, technical. Also sales. You can’t replace chemists and engineers in a very specific field unless you want to spend many years training new technical folk. On the sales front, it’s all about relationships. Our customers know our salespeople well; Our sales staff treats them well. Replace the sales staff and the customers will leave.
The people who didn’t survive - HR, Accounting, IT. To an extent, all of these are “drop-in” replacements. And accordingly (and somewhat sadly) a lot of these people were dismissed for the people from the buying company.
If your reporting structure changes make sure your new boss knows what you’re working on, contributions you’re making and that you’re a boost to the company bottom line not a drain.
It takes excellent social skills to deliver that message without coming across as desperate, but in general the bottom line is to build a professional relationship with your new boss.
Be aware that the buyer may only be interested in part of your company and after absorbing or spinning off the part they prefer, the remainder of your company could be sold yet again in a few years.
Pay attention to what persons higher up the ladder than you do within the next year. If several of your company’s formerly key players move on to other opportunities it is a real good indication that you should too.
If you’re in middle management you’re doomed. If you’re a peon (even a high level peon) then you’re probably going to be alright. I’ve been in the IT sector and been through many mergers, downsizings and other corporate hilarity and usually those have been one of the ones to go. Not only those though. What do you do in the energy sector? Do you work with generation or are you a buyer, or do you work in administration? I work for a power company in the helpdesk, and we just consolidated our IT departments with another merged company (I’m not sure who bought who). Ours is more complex and established so the other IT department will eventually be dissolved.
I would update your resume anyway. And references. It’s not panicking if you do so, it’s just preparing for the worst.
Excellent and though-provoking comments so far; thanks very much. The ones concerning which areas are likely to get the chop are spot on, IMO. I have a feeling my colleagues in those areas are going to be able to guess what their situations are likely to be and I expect a less than sunny atmosphere at the office this morning.
Been throught it twice. 1st time with the merger of departments buying company revamped whole department. Buying company were allowed to put in for any openings 1st including promotions. What was left wwe were allowed to put in for. Only opening in my position was going to be a 60 mile commute and loss of company truck. As as buying company pay level was below old company’s a pay cut of about $3.50 an hour. I took the severance package. Suprised everyone because they created the position to keep me there. But with the commute and pay cut I knew I was going to look elsewhere.
2nd time no change in position, but old company regional engineer wanted to make a name for himself. Cut out crew out and moved less qualified crew in at about 1/2 the pay.
I think the message here is that change is a constant. You should always be working on polishing your image and output for the company. Make yourself stand out and become “irreplaceable” if you can.
It’s not necessarily true that middle management people are doomed. Not only have I survived many mergers, downsizings, etc., but so has my boss. It’s because our group is one of the most productive in the company, and it’s largely due to my boss, who is the director of our group. She’s well known in the industry. The company is lucky to have her, and they know it.
Been through several, as part of the buyer and the “buyee”
Dust off the resume, absolutely…but also keep doing your job as best you can, and keep a positive attitude - at least in public. There were several times individuals were let go and it was pretty clear it was due to attitude. Turf wars over “our way was better” don’t help productivity, and they really, really annoy management. (The company I work for now is the result of the merger two very, very different oil companies. I started a year after the merger, from outside of both, and there were many times I wanted to stand in the hallway yelling “you’re both wrong!”
My CV sounds like yours, but in the software industry.
Buyout was by equity investment groups that purchased and merged us with competitor, then leveraged us to the hilt. Most of upper management left immediately, middle managers started to wander off or were terminated.
Thought I was in a bulletproof position, but saved my ‘Go frak you money’ anyway. After four years, they kicked me to the curb. Searching for another position, but may in fact be retired…