Kinetic Concepts Inc. to Lay Off 114 in San Antonio After Leveraged Buyout

This story caught my attention because the scenario is very similar to the one that caused my father to be laid off for six months back in 1986: a leveraged buyout attempt by a UK based equity firm. My dad was eventually rehired. These folks may not be so lucky, as reported My SA.com:

San Antonio-based medical devices and biotechnology firm Kinetic Concepts Inc. announced 127 layoffs on Tuesday, 114 of them in San Antonio, most involving administrative positions, as the company realigns its three business units.

The company employs about 7,100 globally, 2,100 in San Antonio. The layoffs account for a little more than 5 percent of the San Antonio workforce and less than 2 percent companywide. The 13 layoffs outside of San Antonio involved positions within the United States.

The layoffs mainly eliminated positions in finance, human resources, information technology and corporate communications. To a lesser degree, layoffs occurred in marketing and research and development, a corporate spokesman said.

Okay, lay some corporate FlackSpeak on me:

“Throughout our 35-year history, we've been a stable employer and provided good jobs to thousands of employees — even during the global economic challenges of the past few years. With the changing landscape in healthcare, and with an eye toward the future, we need to match our workforce to the needs of the business and our customers.

“We will continue to maintain a significant employee base in San Antonio and look forward to opening our new global headquarters here this summer,” the statement concluded.

KCI last year acquired 8.3 acres at 12930 Interstate 10 West, south of Hausman Road, where a three-story, 100,000-square-foot building is being built for its new headquarters.

The layoffs follow the November leveraged buyout of KCI by a group led by London-based private equity firm Apax Partners. The deal was valued at $6.1 billion.

So typical...the billionaires play their buyout games and the workers get the shaft. That's how it is in our crony capitalist system these days.


Bonus: "Games people play...you take it or you leave it. The things that they say don't make it right"