Sothebys layoffs, on the record
Every job cut, severance charge and restructuring Sothebys reported in its annual reports, 2016 to 2018, quoted from the filings. Headcount went from 1,617 to 1,713.
Headcount, as reported
| Annual report | Employees | As of |
|---|---|---|
| 10-K for 2016 | 1,617 | December 31, 2016 |
| 10-K for 2017 | 1,662 | December 31, 2017 |
| 10-K for 2018 | 1,713 | December 31, 2018 |
Job cuts, severance and restructuring
Our summaryVoluntary separation incentive programs implemented in Q4 2015; in 2016 the company recorded a net credit to the original charge.
Word for word“In 2016, we recognized a net credit of $0.6 million to the originally recorded charge primarily as a result of our quarterly assessment of the likelihood that the performance-based stock units held by participants in the Programs will vest.” 10-K for 2016
Our summaryEntered into contractual severance agreements with certain former senior employees providing cash severance and continued vesting of share-based awards.
Word for word“These agreements resulted in net charges of $7.4 million recorded within salaries and related costs in 2016.” 10-K for 2016
Our summaryLeadership transition severance costs for termination of certain executive officers, including former CFO and former COO.
Word for word“In 2015, in conjunction with our leadership transition, we incurred severance costs of $13.3 million associated with the termination of the employment of certain executive officers, including our former Chief Financial Officer and former Chief Operating Officer.” 10-K for 2016
Our summary2014 Restructuring Plan with headcount reductions principally in the U.S. and U.K.; headcount reductions completed and liability fully settled.
Word for word“The headcount reductions resulting from the 2014 Restructuring Plan were completed in the third quarter of 2015, and the associated liability has been fully settled.” 10-K for 2016
Our summaryVoluntary separation incentive programs were offered to employees; the final severance payments were completed and a small credit was recognized in 2017.
Word for word“In 2017, we recognized a credit of $0.2 million as a result of the reversal of the remaining liability related to the Programs following the final payment of severance benefits.” 10-K for 2017
Our summaryContractual severance agreements were entered into with certain former senior employees; no net charge was recorded in 2017 after the 2016 charges.
Word for word“In the first and third quarters of 2016, we entered into contractual severance agreements with certain former senior employees that provide cash severance benefits and the ability to continue to vest in share-based payment awards after termination of employment.” 10-K for 2017
Our summaryEmployee benefits and payroll taxes rose in 2017, partly due to increased employee severance costs.
Word for word“In 2017, employee benefits and payroll taxes increased $14.7 million ( 35% ), principally due to newly added staff, higher overall compensation levels, and increased employee severance costs, as well as a $2.2 million decrease in the net credit associated with the U.K. Pension Plan, as discussed in more detail below.” 10-K for 2017
Our summarySotheby's carried out a restructuring plan to cut headcount by eliminating certain Agency segment and corporate positions, finished it in the fourth quarter of 2018, and recorded charges mostly for severance.
Word for word“The 2018 Restructuring Plan was completed in the fourth quarter of 2018 and resulted in $10.8 million of related charges, almost entirely attributable to severance-related costs.” 10-K for 2018
Our summarySotheby's recorded net charges for contractual severance agreements with certain former employees, which let it redirect pay toward headcount supporting growth initiatives.
Word for word“Contractual Severance Agreements —In 2018, we recorded net charges of $2.6 million resulting from contractual severance agreements entered into with certain former employees, which allowed us to redirect compensation towards the headcount supporting our various growth initiatives.” 10-K for 2018
Our summarySotheby's recognized a charge in 2015 for its voluntary separation incentive programs, covering cash severance and accelerated equity compensation.
Word for word“In the fourth quarter of 2015, we recognized a charge of $36.9 million as a result of the Programs, consisting of $33.8 million in cash severance benefits and $3.1 million in accelerated equity compensation expense related to awards that will continue to vest after termination of employment, subject to our achievement of the underlying profitability targets, when applicable.” 10-K for 2018
Sothebys has filed no restructuring notice (Form 8-K, Item 2.05) since 2016. Companies file one only for a cut they judge material, so many announced layoffs never appear as one. This page shows what the company reported to the SEC, not news reports or state layoff notices.
Read from Sothebys’s annual reports (10-K for 2018, 10-K for 2017, 10-K for 2016) and the financial data it files with the SEC, as of 2019-02-28. Every quotation is word for word from the filing linked beside it; how these pages are built and checked. The full record is in its company data sheet.