Taleo Begins Vurv Integration By Eliminating Jobs
On Friday, Taleo announced eliminating approximately 160 jobs at Vurv as part of the acquisition integration. Based on my most recent estimates, that is over 50% of Vurv’s total workforce.
With any merger integration, their will be job duplication that needs to be streamlined. I can’t say this wasn’t unexpected but obviously it seems much more dramatic than the earnings/acquisition call would have led the market, employees and customers to believe.
Thoughts?
June 24th, 2008
21 Comments Add your own
1. Naomi Bloom | June 25th, 2008 at 10:53 am
Jason, Helpful post that should be read by all Vurv customers and competitors. Relying on your estimate these layoffs are 50% of Vurv’s workforce, that suggests the following: (1) Vurv customers shouldn’t expect much beyond major bug fixes from now on; (2) new Vurv customers or existing customers who are relying on Vurv customer services and/or implementation support should consider other sources — and the very newest may want to consider shutting down their implementations in favor of Taleo or other alternatives; (3) all Vurv customers should begin reviewing their business needs as well as Taleo’s migration deal and other software alternatives in terms of their future direction in integrated talent management; (4) Taleo competitors should get ready to pick up some new customers from among those very new and not yet implemented Vurv customers as well as those already implemented and running Vurv customers who, for whatever reason, don’t fancy a migration to Taleo. Please note that I would make and have made these same points whenever the acquiring vendor’s layoffs go way past the obvious overlaps in admin and intent to end sales of the acquired products.
2. Michael | June 25th, 2008 at 1:01 pm
This is innacurate. Around 80 people are gone and that includes quite a few Taleo people as well.
Michael
3. Jason Corsello | June 25th, 2008 at 2:38 pm
Thanks Michael. Although I am not sure of the actual number, I did hear from a trusted source that the job elimination included Taleo employees as well.
4. soon-to-be-ex-Vurvite-future-Taleon | June 25th, 2008 at 6:51 pm
Yep, that number includes Taleo employees. The approximately 80 Vurv employees Michael quoted is just the US-based workforce. Even if they all were separated, there aren’t enough international Vurv employees to add up to 160.
It was also pretty clear from Taleo’s Wall St. analyst presentation last week that there would be cuts from within their ranks.
5. Former Vurv Employee | June 25th, 2008 at 8:20 pm
These numbers are not inaccurate, they were reported by Taleo. These will be the final numbers by year end. The exodus has already started too, a lot of great people have already left for other opportunities. A few competitors have already taken advantage of the great talent leaving Vurv.
6. Sageer | June 26th, 2008 at 1:19 am
its some where near 50% as per my knowledge abut this. So many are not accepting the offers from Taleo also. No body has come up with this point. Most of the Development guys have been offered. That means they really are working on something mutual. But will not call that will be a unified platfrm..!!
7. Sageer | June 26th, 2008 at 1:20 am
its some where near 50% as per my knowledge abut this. So many are not accepting the offers from Taleo also. No body has come up with this point. Most of the Development guys have been offered. That means they really are working on something mutual. But I will not call that will be a unified platfrm..!!
8. Mark Stelzner | June 26th, 2008 at 7:27 am
Interesting news Jason. This supports a problem I discussed a few months ago called “The Sideline Offensive” (see http://w4.stern.nyu.edu/news/news.cfm?doc_id=100061).
The premise is that when Company A (Taleo) acquires Company B (Vurv), competitive firm C (pick your vendor here) should have a field day by overtly targeting the best customers, employees and suppliers of both A & B, thus effectively attacking from the sidelines. As quoted from the article:
“The most vital area up for grabs is the combined customer base of the merging companies. As anyone who has gone through an integration process can attest, attention very easily gets diverted in a merger. It might mean customers’ calls go unreturned or maybe… pricing gets ratcheted up. Even if these scenarios don’t develop, clients may habitually think about alternatives as a precaution.” (The Sideline Offensive, M&A Magazine, page 40)
This is a real concern (and opportunity).
Best,
Mark
9. James Hendy | June 26th, 2008 at 8:33 am
Blimey - They mastered alignment pretty quickly! Taleo’s PM/TGM modules must be better than i thought…
10. Perry | June 27th, 2008 at 11:58 am
Looks like there will be 80-160 people ready to begin working on/at a recruiting solution start up.
The circle of life.
11. Jason Corsello | June 27th, 2008 at 1:07 pm
Interesting but don’t see that yet. I fully expect to see Derek Mercer in this industry again. The question really is how soon which depends on his non-compete agreement with Taleo.
12. Vurvian No Longer | June 28th, 2008 at 8:39 pm
The 160 is the right number when all factors and locations are taken into account. There were not that many Vurv people who were offered positions that turned them down despite talk amongst the troops. Taleo is only laying off a quarter of the people compared to the massive amount of Vurv employees that were given notice. The percentage of Vurv employees that will be severed overall is between 45 and 50%.
As Former Vurv Employee states alot of good Vurv employees are being let go and they are finding great jobs. Anyone out there who does not snatch them up is crazy. Someone in the market is going to have to fill the gaping hole left by Vurv’s absence and they will need good employees who know their stuff.
13. Current 'Vurv-leo' employee :) | July 1st, 2008 at 10:24 am
Of the 280 -300 empkoyees - tt is about 1/3 full time offers, 1/3 transition (3 or 6 months) and about 1/3 separated at close.
14. Glad I missed the "Ta-layoff" | July 1st, 2008 at 11:56 am
Today is the day that the deal is supposed to close. From what I have heard, there are several Taleo competitors who have snatched up some of the talent that did not wait for today. Also, rumor has it that some of those separated at close (today) that have offers from competitors as well.
The real question I have is about those who were given “full time” offers. What exactly is a “full time” offer when Taleo is going to migrate Vurv clients to the Taleo platform? I don’t expect that this is the last of the “Ta-layoff”…
15. Unfortunate | July 2nd, 2008 at 11:49 am
“It’s all about the person” Vurv was a place that broke down the business attitude associated with most companies. Meaning internally Vurv had more of a family business/family/personal attitude. Vurv brought out levels of dedication in its employees that I have not seen before. Employee’s hearts were in it, the work environment like none other. Progress was being made on a very high level. Every employee really believed in the “All about the People” motto that RMax/Vurv has had for many years.
Unfortunately in May all of the employees at Vurv felt the sting which seemed like a nightmare. Not just regular employees but C and V-Level employees as well. Many worked for the company for many years and stuck with Vurv even through “Black Friday” aka the “reorganization” when morale was extremely low. Another example is when bonuses were not paid out to its employees for multiple years. Also employees were told time and time again that this was the year that Vurv went public. Everybody stuck by Mr. Mercer.
In reality the only person who made out on this deal was Mr. Mercer. The stock options that were given’ to employees, in lieu of higher salaries, worth almost nothing in the end.
It’s funny that in last few weeks at Vurv Mr. Mercer was never around. He also didn’t stick around the last day of June when half of his dedicated employees were being let go. Instead he opted to duck out the prior day.
The day the acquisition was announced Mr. Mercer spoke about how he couldn’t bring Vurv to the next level. An insult to all of those dedicated employees who sat shocked in front of him who was dedicated employees. Not only was the company being bought but it was being bought by “the enemy” Taleo.
It is understood that business is business however that is not how Vurv was perceived by its employees.
For those let go not going into the office anymore is kind of like losing an old friend. In the end however we were all duped by our leader.
It’s all about the person.
16. Phil Fersht | July 2nd, 2008 at 5:08 pm
“Unfortunate”,
I wasn’t intending to add my 2 cents on this story, especially as Jason has been doing such a good job covering every angle. However, your comment moved me - and I wanted to express my sympathies to you and your colleagues who recently lost your jobs. I knew some of the old “Recruitmax” crew back inthe day - and had some very good evenings out with them. It was refreshing to know people in the industry who were so energized by their firm and its leadership - and such a fun bunch to hang out with.
As painful as it is right now, what has transpired at Vurv is an unfortunate reality of today’s corporate culture in a tough cut-throat market. Try to hang on to the good memories - and good luck with your next move.
Phil.
17. Also Unfortunate Was... | July 2nd, 2008 at 7:45 pm
Vurv never once being profitable.
The culture was great, as were the free snacks, drinks, the dress code, the flexible hours, the grand holiday parties, etc. Eventually, something had to give. The board, investors, and shareholders can only wait so long.
Really, it’s all about the money. Capitalism’s great, ain’t it?
18. Aaron B | July 3rd, 2008 at 12:13 pm
OK #1 that’s an old URL
#2 I WANT SOME OF THESE VURVIANS!!
I’ve been spamming the Jacksonville Craigslist job boards for a few weeks to get ColdFusion Developers, and not much love.
Maybe Vurv paid too much. Maybe you’re worth $100K. Maybe a monkey is gonna fly out of my butt.
I have a real offer for a good developer - check out Craigslist for ColdFusion.
I’m just trying to help y’all…
19. Techsphinx | July 3rd, 2008 at 1:30 pm
To Unfortunate and Phil Fersht:
While seeing a business end and laying off employees are both unfortunate and difficult things, how can you possibly impugn Derek Mercer’s actions in any credible way? This man had a fiduciary responsibility to his shareholders!
Yes laid off employees will have to find new work, but do you even think about the people who put personal money at risk to see Vurv prosper? I am talking founders, friends and family (not that the responsibility to professional investors isn’t as important). Every CEO and Board of Directors has to face the issue of go it alone, or get acquired. This was a good price for Vurv, and I see no one on this blog saluting Derek Mercer for cutting his shareholder’s risk and creating real returns for those that had faith in him.
Now, if Derek didn’t do the Taleo deal, and Vurv cratered as a stand alone business, then it would be fair to criticise Derek and the Vurv Board for destroying everyone’s value, investors, common shareholders, and employees alike. But that is not what happened.
Criticise Vurv if you like on the grounds that staying it alone meant better business sense. But if you do, you should be prepared to support that criticism with more than simple regret about the great Vurv corporate culture that is going away.
Personally, I think a lot of those great ex-Vurv people are going to do just fine…as will Taleo.
20. Phil Fersht | July 7th, 2008 at 5:34 am
“Techsphinx”
Did you read my comment correctly? I was simply consoling the poor person that lost his/her job - and he’s entitled to express his feelings (isn’t that what blogging is all about?). The issue regarding whether Mr Mercer got a good deal for his shareholders is not in question.
PF.
21. Jaxgal | April 28th, 2009 at 8:09 am
Just heard that Derek Mercer purchased ATS Staffing Agency - very interesting!!!! Here he come again……..
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