Major resturctuing at Vivendi Universal breaks up games companys
by David Dougher · in General Discussion · 07/15/2004 (5:42 am) · 3 replies
Did a quick search and didn't see this posted anywhere else so I thought I would throw it up here.
According to a report in Gamespot for July 15th Vivendi Universal has decided to break up all its game businesses into individual units. This continues the disintegration of the company that began last month with the firing of about 300 people in the North America.
The latest round creates individual groups in North America, Europe and Asia-Pacific, each with its own president.
Christphe Ramboz the COO and president of international has left the company. All the new presidents will report directly to CEO Bruce Hack.
Personal opinion - when your ship is going down, and your chief operating officer takes a powder, you don't fire hundreds of the people doing the REAL work and give all the guys at the top promotions...
This is a cheap ploy to make it look like you are doing something. Ramboz is hoping the "halo effect" (reshuffle people in a company to get a temorary boost in productivity - well known psychological effect) makes him look good for a month or so and then he will have nailed down his golden parachute and be ready to cut and run. Expect major desertions in Vivendi game companies. Vivendi stock won't be worth toilet paper in about a year if this keeps up.
Here's the actual article...
http://www.gamespot.com/news/2004/07/13/news_6102477.html
According to a report in Gamespot for July 15th Vivendi Universal has decided to break up all its game businesses into individual units. This continues the disintegration of the company that began last month with the firing of about 300 people in the North America.
The latest round creates individual groups in North America, Europe and Asia-Pacific, each with its own president.
Christphe Ramboz the COO and president of international has left the company. All the new presidents will report directly to CEO Bruce Hack.
Personal opinion - when your ship is going down, and your chief operating officer takes a powder, you don't fire hundreds of the people doing the REAL work and give all the guys at the top promotions...
This is a cheap ploy to make it look like you are doing something. Ramboz is hoping the "halo effect" (reshuffle people in a company to get a temorary boost in productivity - well known psychological effect) makes him look good for a month or so and then he will have nailed down his golden parachute and be ready to cut and run. Expect major desertions in Vivendi game companies. Vivendi stock won't be worth toilet paper in about a year if this keeps up.
Here's the actual article...
http://www.gamespot.com/news/2004/07/13/news_6102477.html
About the author
Owner - Pariah Games, Adjunct Professor - Bristol Community College, Mentor - Game Design - Met School Newport, Mentor - Game Design - Met School Providence
#2
07/17/2004 (4:13 pm)
Luckily Blizzard will probably be able to survive a sinking ship. I feel bad for the new game companies that were probably getting their first contracts through Viv. 
#3
A new CEO was brought on to replace one who was being booted for failure to turn the company around. The new CEO actually happened upon the departing business leader who was cleaning out his desk. On the desk, the outgoing officer had left three envelopes.
The outgoing CEO told his replacement, "Those envelopes are for you. I've numbered them one through three. They contain some advice I have for someone coming in to head up this company. If the company is in a crisis and you don't know how to solve it, open the first envelope and see if the advice helps you. Open the second one the second time you are in trouble, and so on. Well, good luck!"
The two shook hands, and the new CEO began his job. Things went well for several months, but then once again the company began having some problems, and the stockholders demanded to know what was being done. After exhausting his ideas, the CEO opened the first envelope left by his predecessor. Inside was a note with a single word: "Restructure."
Thinking it was a good idea, this new CEO did just that. The stockholders were satisfied, the company's stock improved, and things seemed to be going well for about six more months. Then things hit a downturn again, and in spite of his best efforts, the CEO was incapable of turning things around. In frustration, he opened the second envelope. Once again, the note inside contained a message: "Layoffs."
The CEO followed the advice, and sure enough - things turned around. Everything was going well for the short-term, but within six months the company was once again losing steam, and the stock price was falling. Anxious for more valuable advice, this CEO decided to open the last envelope left him by his predecessor. Inside was a note, with the following message:
"Prepare three envelopes..."
07/18/2004 (10:22 am)
Reminds me of a story.A new CEO was brought on to replace one who was being booted for failure to turn the company around. The new CEO actually happened upon the departing business leader who was cleaning out his desk. On the desk, the outgoing officer had left three envelopes.
The outgoing CEO told his replacement, "Those envelopes are for you. I've numbered them one through three. They contain some advice I have for someone coming in to head up this company. If the company is in a crisis and you don't know how to solve it, open the first envelope and see if the advice helps you. Open the second one the second time you are in trouble, and so on. Well, good luck!"
The two shook hands, and the new CEO began his job. Things went well for several months, but then once again the company began having some problems, and the stockholders demanded to know what was being done. After exhausting his ideas, the CEO opened the first envelope left by his predecessor. Inside was a note with a single word: "Restructure."
Thinking it was a good idea, this new CEO did just that. The stockholders were satisfied, the company's stock improved, and things seemed to be going well for about six more months. Then things hit a downturn again, and in spite of his best efforts, the CEO was incapable of turning things around. In frustration, he opened the second envelope. Once again, the note inside contained a message: "Layoffs."
The CEO followed the advice, and sure enough - things turned around. Everything was going well for the short-term, but within six months the company was once again losing steam, and the stock price was falling. Anxious for more valuable advice, this CEO decided to open the last envelope left him by his predecessor. Inside was a note, with the following message:
"Prepare three envelopes..."
Torque Owner Thomas Glennow