Is anybody from RW going to give s better explanation of the layoff that just happened so RW members do not get nervous about the viability of the company long term?
Private companies rarely comment further than what you see in the press. In this case, all from Republic’s CEO:
“Revenues have grown at a strong 168 percent (current annualized rate versus 2018), and we are expecting that to increase to over 250 percent by end of year. Those are strong growth rates by most company standards.
This move was about shifting our resources to better align with our current strategy and mission, and sometimes that requires eliminating certain roles and expense, so you can invest in other areas and ways.
We remain committed to growing both our Republic Wireless business and our new Relay product, a smarter and safer phone for kids, which recently became available in over a thousand Target stores around the country.”
I don’t think anybody disputes what the CEO states. And I’ve been a loyal RW member since beta days. Family, friends and co-workers all are happy with RW.
I’ve worked for a good number of companies and industries, and ‘adjustments’ are made from time to time to better align with strategy or to change skillsets needed or change product lines or whatever. But those never get to a 20 percent threshold. That’s a high number, and can cause concern among customers. While the CEOs statement may be correct, it does not assuage concerns about ability to plan strategy long term. A layoff this large can also impact ability to attract and retain better employees in the future.
While all true, privately held companies rarely provide greater insight than what Republic’s CEO has already placed on the record. In addition to the info offered by @louisdi (and as I’m confident you noted), Mr. Chuang is quoted as saying Republic is approaching $100 million in annual revenue, which is a significant number. Of course, we don’t have numbers for Republic’s annual expense and no privately held company is going to release those publicly.
At the end of the day as a consumer, I have to make decisions based on information currently available to me. I see little risk in continuing to do business with Republic. I’m able to cancel service at any time and my Republic number is safely housed with Republic’s former corporate parent Bandwidth.com (now a publicly traded company).
I completely agree with your first paragraph as I previously stated. I’ve worked for private companies most of my life and understand all of that.
My concern is that this large of a correction in workforce, if not part of an external change or disruption in the industry, is not normal. That is the concern. I’ve seen both sides of this as an employee with my past employers. Unless it was part of an acquisition or something like that, 20% is a large number and is normally indicative of an error in planning and/or management. It makes it hard to recruit and maintain top talent. It gives pause to people considerimg them as new member customers.
I love being a RW customer and will still recommend them. I raise this question because I want to see them succeed and continue, not to bash as so many do when something like this happens. It behooves RW, being a more inclusive and member oriented company, to expand a bit more on this, not just give the usual bland and general statement.
That’s all I’ve got
I spend a good deal of time watching numbers. I monitor the performance of our Expert team and of our Community very closely.
One thing I’ve had to learn is that when you are dealing with very small numbers, percentages can sometimes look alarmingly high. Our Expert team maintains a Customer Satisfaction score in the 90 percentile, usually in the upper 90’s. Every now and then they’ll have a day when the number hits 80% and I panic, only to learn on closer evaluation that only 5 people rated them that day. It’s nonetheless 80%, but had 10 people rated them, it very likely would have been 90%. Likewise, our Community stats can demonstrate some ridiculously alarming percentages when small numbers, like the number of bookmarks set daily or personal messages sent are being analysed. Republic Wireless is a small company, and so a small number of cuts can represent an alarming-looking percent figure.
What’s important is not the number, but that we are strategically aligned to take on the increasingly competitive cellular options in the market and we remain passionately committed to continuing to provide outstanding service and value to our members.
It was a very difficult experience emotionally, and we appreciate your continued support and confidence in our company. Our thoughts are with our friends who are transitioning to new opportunities. They are extremely talented and gifted individuals and we are certain they will find success in their new endeavors.
Hmmm, pre-paid plan introduced right before layoffs. Cash-strapped?
I was nervous about the terms of the PP plan, but I signed up anyway. Perhaps my gut was right. I hope not.
At this point, given the protections that consumers are given with telco services, I’m comfortable enough and don’t feel so self-important enough that the more important thing here isn’t the people that lost their jobs. Having had the opportunity to interact with some of them over the years, I would like to wish them all well in their future endeavors. Given the level of talent I’ve encountered I have no doubt they’ll land somewhere great and only hope I have to opportunity to run across them again!
There were numerous and repeated requests here in Community for an annual payment option often mentioning Mint Mobile’s advance payment options. I don’t see any reason to believe Republic’s decision to offer an annual prepay option as anything more that Republic attempting to respond to requests from an apparently significant portion of its customer base.
While I don’t anticipate needing to find another provider in the next year I’d like to hear more about the referenced consumer protections supposedly afforded to those choosing to pay annually for twelve months of service.
I wish the best for those affected by the layoff and hope they can soon get over the disruptions to their and the families lives.
I continue my faith in Republic Wireless and my only concern is for their people that have been affected … Here is a reference that I believe may answer your concern Link to FCC’s ‘When Your Telephone-Company Discontinues Service’
The 1st paragraph is quoted below … there is consumer protection
FCC rules prevent telephone companies from abruptly discontinuing or reducing service for any reason, including bankruptcy. The rules, which also apply to Voice-over Internet Protocol (VoIP) service, are designed to protect you from an abrupt change or termination of service and to allow time to arrange service with another provider.
20 employees - 10% = 2 20 % = 4
35 employees - 10% = 3.5 20% = 7
125 employees - 10% = 12.5 20% = 25
It’s all numbers, and RW luckily isn’t a large company. Here’s a large number.
4400 employees - 20% = 880 employees
Our company laid off 20,000 employees in the 2008-2010 time frame. The CEO used to say not to think of in terms of 20,000 employees, but 20,000 dinner tables full of families. It sucks, and it hurts, but you keep going. Many of those laid off went on to bigger and better things. Some didn’t. Some were hired back in the subsequent years. The important thing was to be there for those that did not have the good fortune of keeping their jobs, and acknowledging that those who kept their job were hurting too.
I quickly read that last sentence of your post, and thought I saw:
“those who kept their job were hunting too”.
Then I re-read it and saw “hurting too”.
There was probably a lot of both going on!
I worked for a company that had lay-offs and rumors of lay-offs for all the 32+ years I was there.
I was hoping for one at the end, so I could have gotten a “separation bonus”, but alas timing is everything, and it was not on my side.
Good luck to all those that were laid off, I hope you get something better and quickly!
Wikipedia says Republic employees over 150 people. So we are looking at over 30 people. It does not seem small to me.
To give you an idea… Verizon employs about 161,000, Sprint about 30,000, AT&T about 268,000 and T-Mobile US about 52,000.
So, 150 (if that’s correct) is umm, small.
Yes. It is small, but we are not talking about 2 people, but 30. That is a lot for a small company. People we trying to make it seem like it was 2 or 3 people. Not quite.
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