Sounds like the board as set the profit bar for the CEO and most likely will result in a change if that profit number is not achieved.
Avigilon Shifts Strategy To Maximizing Profitability (Q4 2016 Results)
Avigilon had previously been known for big spending, hiring a large sales force and throwing lavish partner parties at tradeshows like ISC West. Now, the company says they are going to focus on profitability first.
In this report we analyze Avigilon's Q4 2016 financial results, and statements from the CEO on the future of their business.
Avigilon's CEO effectively controls the board so I am skeptical that he will be removed / a change will happen unless things get far worse (and right now they are on a roll, albeit from a low point).
For the last few years, analysts have been complaining about the lack of profit generation so I suspect this move is in response to that, i.e., make the investors happy with more profits, get rewarded with a higher valuation.
And I do agree with Avigilon's CEO's approach here. They are fairly mature at this stage and the market will only allow so much further growth, so they might as well make profits.
AKA buyout. CEO wants to get the most $$ for his shares as possible. Plain and simple, IMO.
Kevin, you may want to enter the contest: Win $500 - What Company Will Be Acquired Next? :)
And, yes, reducing costs like this could help polish Avigilon up for a buyout.