Embed Notice

In fact I'll take this a step further with some math:

Let's assume the published number of terminated employees is 800. Let's also assume that they get paid US$225,000 per year (very high average estimate), and that Red Hat's overhead per employee is 40%.

That's US$315,000 per year per person, times 800 people that's US$252M per year. IBM (of which RH is a significant chunk) produces that much free cash flow in *three weeks*.

There is no way that terminating all of these people is going to free up so much cash to invest in strategic projects that it can be worth the harm caused to 800 people and their families, and the knowledge loss in the organization, and the attrition that will follow as the remaining people get even more burned out.