Symantec Reorganization, Layoffs: 6- to 24-Month Journey

Written by The VAR Guy 1
January 23, 2013

Symantec (NASDAQ: SYMC) CEO Steve Bennett announced a new company strategy today -- and it will include middle management layoffs through June 2013. But the word of the day for channel partners is patience. The reason: Bennett says it will take six to 24 months for an overall reorganization (involving 10 key areas of focus) to complete. Here's why.

Symantec (NASDAQ: SYMC) CEO Steve Bennett announced a new company strategy today — and it will include middle management layoffs through June 2013. But the word of the day for channel partners is patience. The reason: Bennett says it will take six to 24 months for an overall reorganization (involving 10 key areas of focus) to complete. Here’s why.

The planned company transformation includes a continued channel commitment — though let’s all keep an eye on Symantec’s direct sales force, which will be pursuing new business opportunities. The big question: Can Symantec remain customer- and partner-focused even as the company tries to reinvent itself from the inside out?

Instead of selling off assets, it sounds like Symantec will start leaning more towards integrated software suites. The company’s 10 areas of focus will include:

Mobile Workforce Productivity;
Norton Protection;
Norton Cloud;
Information Security Services;
Identity/Content-Aware Security Gateway;
Data Center Security;
Business Continuity Platform;
Integrated Backup;
Cloud-Based Information Management; and
Object Storage Platform.

Bennett did not disclose how many employees will be cut. But here’s a key statistic: The typical Symantec manager has roughly five direct reports — or half the typical number found in other companies, according to a report from Reuters.

In short, it sounds like Bennett is trying to (A) empower Symantec’s front-line employees (B) eliminate red tape and (C) empower channel partners. Plus, he wants to deliver organic growth to shareholders; he committed to deliver more than 5 percent organic revenue growth and non-GAAP operating margins better than 30% over the next two to three years.

Bennett ultimately wants Symantec to meet three key customer needs:

Making it simple to be productive and protected at home and work;
keeping businesses safe and compliant; and
keeping business information and applications up and running.

So where do partners fit in? Symantec indicated:

“Symantec’s sales process will continue to rely heavily on the channel to manage current customers and free up Symantec’s sales force to focus on generating new business. Symantec will also enhance the marketing organization with more strategic resources and capability to accelerate focus and organic growth.”

Um… that’s good news and bad news. A channel commitment is good to hear. But don’t dump the boring stuff on partners. The channel is great at finding new business. Symantec better not overlook that fact.