Many positions in Kansas City would become redundant after the two companies merged. For five months, DST employees went to work with the faint sound of knives sharpening in the distance. How many heads would roll?
Who would be saved? The answer arrived first thing on the morning of Tuesday, June Having been informed their positions had been eliminated, effective immediately, employees were instructed to turn over their work badges, company credit cards, and any other Electrical Inspection Company property they possessed.
They were told the remaining Electricity Holding Company Dst Company in their desks and offices would be packed up by their managers and shipped to their homes.
Employees were then handed a large white envelope containing the details of their severance packages and escorted off the premises by plainclothes security. Armed guards stood alert in the lobby. The number of DST employees let go is believed to be right around 1, though no official numbers were released. Many of the newly jobless repaired that day to nearby bars like the Quaff and the Peanut, establishments that have long relied on DST for their customer base.
Local media stopped by, having heard about the layoffs, but few of the now-former employees were willing to speak freely. It is, above Sympathy Message From Company, a Lending Company In Metro Manila about the grotesque expanse of inequality that lies between the winners and losers in corporate America in The winners: DST executives who engineered the sale and are now cashing in on compensation agreements granting them unimaginable wealth.
Headquartered in Kansas City since its founding inDST was until recently one of the largest employers in the metropolitan area, with nearly 5, local employees and another 8, worldwide. The number of local employees is likely down below 4, now, though DST has not released the exact number of layoffs and did not respond to repeated requests to comment for this story.
The company epitomized a Midwestern version of business success: large, quiet, boring, conservative, sturdily led. Before long, it began deploying its technology to track mutual fund transactions. This innovation proved revolutionary in the emerging world of information processing systems.
DST grew rapidly and was eventually spun off and taken public in Its clients today include financial services giants like American Funds, T.
Rowe Price, Fidelity, and Invesco. It also maintains records for firms in the healthcare and insurance industries. In the s, when businesses were fleeing downtown for the Kansas suburbs, DST went the other way, reinvesting in the urban core.
The company, which eventually launched its own real-estate subsidiary, transformed the west side of downtown, buying up Monarch Beverage Company buildings Dst Company Quality Hill in which it housed its growing workforce.
Buying up all that property was a business strategy, and, given Queens Electric Company prices buildings fetch downtown these days, it can safely be deemed a wise one. But civic purpose was also baked into those plans. In the late s, the company turned several old Quality Hill buildings into a campus for nonprofits. It received tax increment financing TIF from the city, yes, but at a time when TIF was being used in Kansas City the way it was intended: to correct blight so daunting that developers actually needed an incentive to build.
But DST hardly turned a profit on the deal. It sold those 25 parcels to the city at cost. Being a publicly traded company — as DST has been since — does not lend itself well to the kind of community-oriented approach DST took under McDonnell, though.
Handing out subsidies to the coffee shop next door, or buying up distressed assets and selling them at cost are, in the eyes of sociopathic capitalists, unnecessary acts of philanthropy. But when you lose control of a company that size, you lose control of your ability to invest in your city. He stayed on as CEO until Hooley comes from Boston, where he worked for a company that DST later acquired. Under McDonnell, DST was generally perceived to be a community-oriented local company where employees enjoyed job security and relatively generous benefits.
The baseline of shared prosperity and civic obligation at DST faded away. Things would never be the same. But DST also began to hack away at costs in subtle ways that did not make it into begrudging press releases. DST had long provided free health insurance to employees. InDST eliminated this policy. Those costs have risen every year since. But whatever it was, we have seen an increase in our healthcare costs each of the last six years. Salary increases were delayed and reduced.
Certain paid holidays were eliminated. Employees could no longer carry paid time off PTO over from year to year. Employees who reached their 20th year with the company were no longer rewarded with a sixth week of vacation. And so on. And as the layoffs piled up, those who remained found themselves assigned to workloads that previously required three employees.
I was verging on suicidal territory just trying to keep up with my work and the two other people whose work I inherited after they were laid off. They gave me a two percent raise. And then they [DST] come for my job. The company de-emphasized recruitment, training, and research and development, employees say. Interns who showed promise had no position to step into. Job openings remained unfilled for months and months. Like replacements in a war.
Then there was the retirement plan debacle. DST has long had a unique retirement plan. The other half is a profit-sharing plan that is managed Dst Company an investment advisory firm appointed by DST — meaning ordinary employees have no control over where that pool of money is invested. If you have a disproportionate share of your assets in one stock, and that stock tanks, you are screwed. DST was there from the beginning.
Then came the fall. Spurred by public outrage over the drug price hikes, multiple federal agencies and state prosecutors began investigating Valeant. The probes revealed massive fraud at the company. Investors fled. The stock tumbled. Investing or, perhaps, would advise retirement plan managers to realize gains before they evaporate.
They let it ride. So DST was paying Ruane this high management fee, and Ruane was in turn investing DST retirement funds imprudently — as though the money belonged to high-net-worth individuals, rather than the employees of DST. It gets worse from here. Not exactly. The sale was a family affair. After the deal was finalized, in April of this year, Hooley and other executives began announcing their departures from DST. By virtually every metric, DST became a worse company after Hooley was appointed to lead it.
But that matters not in the diseased swamp of corporate America. He now enters the ranks of the super-rich. A handful of other high-level executives also cashed in. She worked at the company for less than five Drama Ties Theatre Company. Though DST refuses to comment on the number of people it laid off June 26, it is known to be well over Despite this, the company gave no WARN notice to the state.
King, is even a member of the TeamKC advisory board. But neither King nor anybody else in a leadership role at DST apparently even considered the value of offering outplacement services to the thousand Kansas Citians whose jobs had been eliminated.
Correction: at least one DST employee was extended this courtesy. At DST under Hooley, much of this has already come to pass. Even the Chamber of Commerce is having a hard time putting a positive spin on the situation. He survived the June layoffs and describes the aftermath as chaotic: understaffed teams, massive knowledge gaps, confusion about the details of the restructuring.
Many others I spoke to for this story had a similar perspective: at some point, DST fell behind and could never get back to where it once was. Even relatively low-level employees expressed great frustration about this. Why would a company that wanted to thrive cut the benefits of its workers? Why would it lay off so many people? Why would it dismantle the sense of community that had been fostered over the previous 40 years?
The answer — Young Tech Company, as a public company in the United States of America, DST operates inside a broken and depraved capitalist system that is foundationally incapable of factoring human lives into its decision structure; that the economic violence inflicted upon these workers was not the unfortunate byproduct of naive Dst Company hapless leadership but rather a deliberate strategy rooted in banal greed — was at once too simple and too dizzying Dst Company contemplate.
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Then the company got acquired and the total employees went up to 200 and it was still a great place to work. But then the company was acquired by DST and the number of employees went up to a few thousand and it was a good place to work unless upper management deigned to notice you at which point it …3.3/5(8)…