Corporate Replacements

Part
01
of two
Part
01

Workforce and Corporate Replacements 1

Gogo, Ask.com, Coty, Etsy, Bed Bath & Beyond, American Eagle, and Stouse are some examples of companies that have rapidly replaced an important individual.

Workforce and Corporate Replacements

Gogo


Coty


Stouse

  • Clay Davis became president and CEO of Stouse LLC, effective immediately after Bruce Reed's retirement from 14 years of leadership.

4. Bed Bath & Beyond:

  • Bed Bath & Beyond's CEO, Steven Temares stepped down from his position only for board member Mary Winston to take charge as CEO with immediate effect.

American Eagle:

Etsy

Ask.com

GE


Research Strategy

To find examples of companies who have rapidly replaced an important individual or large workforce, your research team started to look for business articles, company press releases, interviews of C-suite personnel. The team looked for information on sites like CNBC Business Insider, The Business Journals, Fortune, among others and found examples of various companies that replaced individuals within the company rapidly/immediately.

WHY THESE EXAMPLES ARE PROVIDED

These examples found are from US based companies and the reason for including these examples is that the companies have replaced an individual in the company immediately/rapidly. However, the reason for including only individual examples is that there are limited examples for companies which have replaced a large workforce rapidly. The examples found for large workforce in companies like GE, Ford, GM, etc were about layoff of workforce and did not provide evidence to show if the companies have replaced their workforce rapidly.

Part
02
of two
Part
02

Workforce and Corporate Replacements 2

Small businesses that have rapidly replaced an integral individual include the Actual Brewing Company, VitaCig, Wowio, Camber Outdoors, Recreational Equipment, Inc., and Puppet. Meanwhile, the National Grid and Honeywell International, Inc. are the large companies that have replaced a large portion of their workforce.

FINDINGS:

SMALL BUSINESSES

The following are the examples of small businesses that have rapidly replaced a key individual in their organizations:

1. The Actual Brewing Company

  • Fred Lee resigned as CEO and was immediately replaced by Nicole Felter.
  • The Actual Brewing Company is a small company with an annual sales revenue of $341,432.

2. VitaCig

  • VitaCig's interim CEO, Maury Winnick, was immediately replaced with Paul Rosenberg.
  • VitaCig is a small company with an annual revenue of $0.36 million.

3. Wowio

  • Brian Altounian took the CEO position from Robert Estareja on the same day.
  • Wowio is a small company with an annual revenue of $0.13 million.

4. Camber Outdoors

  • Deanne Buck, the Executive Director of the Camber Outdoors company has declared that she will resign from her position immediately.
  • Ms. Buck was replaced by Diana Seung.
  • Camber Outdoors is a small company with less than 19 employees.

5. Recreational Equipment, Inc.

  • Jerry Stritzke urgently announced that he is resigning from Recreational Equipment, Inc. (REI).
  • Mr. Stritzke was immediately replaced by Eric Artz who will be the interim CEO.
  • REI is a small company that earns around $5.4 million per year.

6. Puppet

  • Effective immediately, Puppet CEO Luke Cannies is turning over his role to Sanjay Mirchandani, the company's COO.
  • Puppet is a small company with an annual revenue of $13.8 million.

LARGE BUSINESSES

The following are the examples of large businesses that have rapidly replaced a significant number of their regular workers:

7. National Grid

8. Honeywell International, Inc.

  • Honeywell, a defense company, has been continuously threatening its striking workers that it will pull in government soldiers to replace them.
  • This is similar to the given Fedex case where Fred Smith has been continuously threatening his pilots that he will contract the jobs out.
  • Honeywell even hired "scab replacement workers" to work on its uranium plant in Illinois.
  • Honeywell International, Inc. is a large company that is earning around $41.8 billion in revenue.

RESEARCH STRATEGY

We started our search by looking for directly available information on the examples of US companies that have rapidly replaced an integral individual or a huge workforce in the past ten years. We looked for this information in various sources such as in business publications such as Forbes, Biz Journal, Entrepreneur, Business Insider, and other similar sources; government publications such as SBA, Department of Labor, and others; research sites such as Gallup, Pew Research, and similar sites; media outlets such as CNN, The Boston Globe, Columbus Alive, and similar sources; consulting sites such as PWC, Deloitte, and other relevant sources. Based on this search strategy, we were able to find several examples of these companies that were able to quickly replace an individual or a large chunk of their workforce. We included some examples from the past ten years as requested. We also took into account the definition of small businesses as those having revenues of $50 million and below or those with less than 100 employees. For those companies that replaced individuals, we made sure that these are small firms as per the standard business guideline on the revenue amount or the number of employees. We also included two large companies that have tried replacing their regular striking workers with inexperienced laborers, similar to the given Fedex case.
Sources
Sources

From Part 01
Quotes
  • "Gogo CEO Michael Small resigned last night. The departure, according to a press release was "mutual" between him and the board of directors to leave as president, CEO, and as a director of the company. Small was replaced by Gogo board member Oakleigh Thorne effectively immediately."
Quotes
  • "The Miu Miu Perfume maker also said Chairman Bart Becht would be replaced by company director Peter Harf immediately, without giving details."
Quotes
  • "Clay Davis became president and CEO, effective immediately. He replaces Bruce Reed, who is retiring after holding the position for the last 14 years. Reed will remain active on the New Century-based company's board of directors."
Quotes
  • "American Eagle CEO Robert Hanson has resigned, effective immediately. For now, board chairman Jay Schottenstein will serve as interim CEO, the company said in a news release."
Quotes
  • "IAC, Ask.com’s parent company, has announced that Jim Lanzone, the CEO of Ask.com, will be replaced immediately by Jim Safka as the new CEO of Ask.com."
Quotes
  • "The conglomerate on Monday announced that it has removed former CEO and chairman John Flannery, replacing him with Lawrence Culp, effective immediately. "