Comments on: A Scalpel or a Hatchet? http://theasicguy.com/2008/11/06/a-scalpel-or-a-hatchet/ sharing insights into the people side of ASIC design Sun, 14 Mar 2010 18:47:21 +0000 http://wordpress.org/?v=2.3.2 By: harry http://theasicguy.com/2008/11/06/a-scalpel-or-a-hatchet/#comment-298 harry Mon, 10 Nov 2008 04:59:12 +0000 http://theasicguy.com/2008/11/06/a-scalpel-or-a-hatchet/#comment-298 The scalpel vs. hatchet metaphor is whether Cadence is "trimming the fat" vs. deciding to exit entire products. From those I've spoken to, it looks like Cadence has so far (a) gotten rid of most of the executive staff, (b) a lot of high-paid VPs and Directors that may have been brought in during the Fister regime, and (c) trimmed organizations that were not contributing as much like tech pubs, IT, etc. These are all positive moves but I agree that none of them says that they are exiting any particular business. The rank and file, despite their apprehension about their own jobs, seem to agree with what has been done so far. Now that the fat is trimmed, the real painful cuts will need to happen, as you say, once there is real leadership. The scalpel vs. hatchet metaphor is whether Cadence is “trimming the fat” vs. deciding to exit entire products. From those I’ve spoken to, it looks like Cadence has so far (a) gotten rid of most of the executive staff, (b) a lot of high-paid VPs and Directors that may have been brought in during the Fister regime, and (c) trimmed organizations that were not contributing as much like tech pubs, IT, etc. These are all positive moves but I agree that none of them says that they are exiting any particular business. The rank and file, despite their apprehension about their own jobs, seem to agree with what has been done so far. Now that the fat is trimmed, the real painful cuts will need to happen, as you say, once there is real leadership.

]]> By: Sean Murphy http://theasicguy.com/2008/11/06/a-scalpel-or-a-hatchet/#comment-297 Sean Murphy Sun, 09 Nov 2008 08:01:21 +0000 http://theasicguy.com/2008/11/06/a-scalpel-or-a-hatchet/#comment-297 They need to determine who their leadership is before they can decide on real strategy. These feel like temporizing moves: I am not sure I understand your scalpel vs. hatchet; if they cut approx 1,000 FTE's (according to John Blyler's post http://www.chipdesignmag.com/blyler/2008/11/05/cadence-eliminates-at-least-12-of-workforce/ ) Then this is closer to a 20% layof. They need to determine who their leadership is before they can decide on real strategy. These feel like temporizing moves: I am not sure I understand your scalpel vs. hatchet; if they cut approx 1,000 FTE’s (according to John Blyler’s post http://www.chipdesignmag.com/blyler/2008/11/05/cadence-eliminates-at-least-12-of-workforce/ ) Then this is closer to a 20% layof.

]]> By: David Muncier http://theasicguy.com/2008/11/06/a-scalpel-or-a-hatchet/#comment-294 David Muncier Fri, 07 Nov 2008 04:13:36 +0000 http://theasicguy.com/2008/11/06/a-scalpel-or-a-hatchet/#comment-294 I would agree with Gary that if Cadence wants to maintain premiums on their remaining differentiated products they must avoid bundling / FAMing / eCarding, and they are going to have to flush the "also rans" that Gary identified. It sounds like they are already going down this path on DFT. On the other hand, that's a painful rethinking of the company strategy and will lead to much smaller, albeit more profitable, company. No knowledge, just the repressed MBA in me running wild. I would agree with Gary that if Cadence wants to maintain premiums on their remaining differentiated products they must avoid bundling / FAMing / eCarding, and they are going to have to flush the “also rans” that Gary identified. It sounds like they are already going down this path on DFT.

On the other hand, that’s a painful rethinking of the company strategy and will lead to much smaller, albeit more profitable, company.

No knowledge, just the repressed MBA in me running wild.

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