A New Image and a New Workforce

Allegations
y We, The Venator Group, has been accused with

following a practice of age discrimination against our employees. y The USEEOC s claims:
y We laid off 400 employees based on their age y Replacements were mostly teenagers y We did not allow these employees to apply again for the

new part-time positions

Context
y When the CEO, Roger N Farah joined, the company

was in dire straits

y A debt of over $1.2 billion y The company was insolvent. y It was on the verge of bankruptcy which meant the

thousands of employees of this organization would have lost their jobs.

Handicaps
y The current handicaps of the organization y Our flagship dime stores were bleeding cash. y The company had antiquated inventory systems. y Our stores were not equipped to tally daily sales. y A major problem was we were present in outdated formats, hurting profits and thus furthering our inability to generate cash for a turnaround.

Options
Declare bankruptcy and liquidate our assets 2. Try to improve the system and the efficiency to achieve turnaround within the existing structure 3. Go for complete restructuring and do whatever is necessary to make the company solvent again.
1.

Option 1 It would have involved laying off the entire staff

Option 2 Given the enormous size and complexity of the problem at hand, it would ve delayed but probably not avoided bankruptcy.

Option3 Take whatever steps necessary, even of they are harsh, for the revival of the company and in turn save the majority of the employees.

y Option 3 needed us to increase revenue and cut costs

which involved
y Restructured 41 divisions to 21 store formats. y Sold off our headquarters which generated the much

needed cash. y Entered into youth-targeted markets of sports. y Closed down 400 stores which were loss making and laid off employees.

y Reasons why these employees were laid off o We were reducing the number of stores, hence the employees. o Transform wage bill structure from full time to part time to reduce costs. o We laid off employees whose wages, and not ages, were high to reduce costs.

o The new sports stores, which were primarily

targeted at a younger consumer required a youthful image. o We could ve laid off employees who were less technology savvy and whose productivity was low versus their pay

Conclusion
y We have empathy with the employees who were laid

off. But for the greater good of the remaining employees, it was a necessary action. We wish we were in better circumstances and had a less painful alternative.

THANK YOU
y Presented By Group 2 y Aditya Somani y Akash Gaurav y Birma Ram y Kshitij Sharma y Shrey Kumar Singh