Pivot3 Mass Layoffs

By: John Honovich and Sean Patton, Published on Mar 27, 2020

Pivot3 has conducted mass layoffs, the culmination of grand hopes, a quarter of a billion dollars in VC funding, and multiple failures to gain mass-market success.

In this note, we include feedback from Pivot3 management and examine their steps and missteps over the last decade.

Pivot3 Statement

Pivot3 said that the layoffs were part of structural changes related to coronavirus:

This market disruption has caused many of our customers to delay their decisions and to pause projects while they evaluate their own situations. There is currently very little indication of how long this situation will last. We are committed to continuing support for our customers and partners, so this morning Pivot3 undertook some structural changes to ensure that we weather this situation, however long it lasts, and continue to support our customers. We believe that Pivot3 will emerge stronger for these changes, and fully intend to continue providing solutions of exceptional value for our customers through this market crisis and beyond

Mass *******

******** ******* **** **** that *** ******* **** roughly **% ** ****** employees.

****** **** **** *** number ** *** ********, that ** ** **** than **% *** ***** not ******* ** ******:

* ***’* **** * specific ****** *** *** right ***. *** ***** was ** **** **** we ********** * ******* core ** ****** ********** for *** ********* *** to ******** ** ******* business.

** *** ** **** than **% *** ****** certainly ***** ******* **** percentage *** *** *** would **** ******* ******** if *** **** ***** than **%.

****** *** ***+ *********, meaning **** ***+ ****** lost ***** *** ** the ******.

More **** ***********

***** *********** *** ** the ******* *** ***** changes, ********* ** ******* industry *******, ****** *** been ****** ********** *** quite **** ****.

Pivot3 ******* ** **********

* ****** ***, ****** hit *** ***** ************ market **** **** *** money *** *** ****** for ******** ******* *********, while ******* ~$*** ******* in ******* (*** *******).

***** ****** *** ******** success **** ************ ** the ***** *****, ** was ********* **** *********** SAN ******* *** **** large ***** ******** ***** their ******** *****-** *** server ********** *** ******** capacity ********** ************ *** more ****** ******. **** were *** ****** **** market *** ** ***** solution's **** *** **********, and ** **** ********* and ***** **** ******* outside ** ************.

**** **** **** ** their $** ******* ** funding ****** ** **** to **** ************* ** ******, *** ******* *** hyper-converged ******, ***** *** a *********** ****** ** surveillance.

** ****, ** ***** about ******'* ******* *** spending:

**** ****** ** ****** impossible ** ******* / return ** *** ******** market. **** ***** * decade, ******* ******** ******'* video ************ ******* ** in *** *** **** of ******* ********. ***, that **** *** **** close ** ********** *** overall ***** ** **********. Secondly, ***** *** ***** surveillance ****** ** **** not **** *****, ** would ** **** ** ever **** ** **** their ********** *****.

Poehler *** - ********* ********

****** *** *********** *********** executive ******** ****** *** last *-* *****. ** 2016 ** ******** **** 3 ********** *** ******** senior ************* *** *******.

** ******* ********* *******, ********* ***** *******'* ex-President, *** **** ****** VP****** *** ******* ** Chief ******* *******. ** ******* **** the ******* ***** ******* a **** *** ******* a ******* ****** *******.

Nail ** *** ******

**** *** **** **** be *** ***** **** in *** ****** *** Pivot3. ** **** ** interesting ** *** ** or *** ****** ****** yet *****.

Another *********** ***?

Comments (35)

****** ****.

*** ****** ****** *** make **** *********.

**** ********* ****!

* **** *** *** the ***** **** * Pivot3 ********. *** ********** call **** **** **** clearly **** ***** ** had ****** *******, *** that ***** **** * skeleton **** - ****** was ******** ** ** entity

** ******.

*** ********* **** **** laid *** *** ***** via ***** ** **** other ******** ***** ********** system. *** "***" *** with *** **** ******* the ****** **** *** said "** *** *** watching ****, *** ** longer **** * ***". They ***** **** ** 2 **** **** ******** that *** *** **, and *** ********. ***** are ********* ********** ** get ******** **** ****** and ****- ** ********** to *** ** **** actually ***.

** ******, ***** *** "CEO" ***** **%- ********* all ** *** *** channel ****** ******** *****- the ********* ***** *** held ****. **** ******** the *** *** *** all *** ***** **********. While * ** ***** this ***** *** ***** a ********* ********* ********* to *******, * **** think **** *** *** in *** **** ***** heads. **** *** *** tells *** **** **** job ** ** ** a ******* ******* ** the **** *** **** to **** **** **** from $*** ** $****, you **** ***** ** something *****. *** *** CRO *** **** **** sold * **** ** goods *** ** **** one **** *** **** as ****.

* *** ***** *** all ** * ***** and * ******* **** this *** ****** ***** to ******. *** ******** on ***** *** *******- so **** ** **** the ***** **** *** going **** *********** *** asking ** ** ***** planning *** ******* *******. There *** ** **** support *** * ******* program; **** ****** ** done ** **** **** it ****** * *****-**** investment.

* ****** ******* ******** proof ** **** * now ***** *** * believe *** ***** ** as *******. *** ********* into ****** (*** ** which *** ** ******** in ********, ***** **** Stover *** *** ***) funded ****** ** *** start ** **** **** after * ****** *** submitted ** **********. **** year *** ********* **** provided ****** *** * months. *** ***** **** was $** ******* ** 2020 (*** **** **** lowered) ***** ***** **** been ***** ** * doubling ** **** ****. I ******* **** *** investors *** ***** * line ** *** **** and **** "*** **** number ** ** *** all ****". * ***** the *****-** ****** ****** accelerated **** *** ****** going ** ****** ***-****, which *** *** ********* (finally) ******** **** **** had **** ****** ** yearly ******** *** ***** promises.

* *** ** ****** for * *****. * looked **** *** **********, I *** ******** *** I ******** ** ****** talk. * *** *** writing ** *** **** and * ****. *** Pivot3 *******, ***** *********, was * **** ******* overall. **** ****** **** failure ***** ** *** feet ** *** ****** of ******* ******* *** management, *** ***** ***** stomach *** **** ** making * **** ********* change. * **** ***** for ** ****** ********** and ******** *** *** management **** *** **** to ** **** * was ***** *** **** to *** ****** ** Pivot3.

* ***** *** ******* a **** **** *** management ** * ******* that *** ********** $***** of ********** **** ******* substantial ** **** *** years ** ****** ********.

***, ** *** **** expenses.

* ***** ***** ***** model. **** ****** **** entered *** **** ********** market ****** **** *** to ** **** ****** storage ***** **** ******* margins.

******'* ** ****** ********* *** **** **** Reaper ** ***** ************ firms:

**** ******* **** **** for ********** ********* ** do **** ********** ********* pick *******?

*****! *** **** ***** answer ** **** ******** is *****?!?!

***** *** **** * handful ** ** ********* that ***** ** ******** companies, *******, ******* *** LRG *** *** ****** ones **** **** ** mind.

*** ****** ** **** you ***** ** ** that **** ****** **** between **** **** ******** going **** ** *** PR ********* **** ****, so ** * ****** for ***** *** ***** to *****, *'** ******** using *******.

**, ****'* **** *** it, ** ***. *** and ******* *** ******** clients *** **** **** longer **** *******. **** is ********* * **** very **** ***** ** one ****** ***** ********* more **** **** ** we **** ***-****** *********** about *** ********* *** and *** **** *******.

*******, ******, * ***** say *** *******, ********* companies ** ***** ************ tend *** ** *** outside ** / ********* firms.

**'* ***** **** *** these **** ** **** stop **********. *** ********** employee ******** **** *** years ** **** ***********. Pack ** **, **, you're ****.

******* ******* **** ***** messed **. ** ** all ****... ** **** he ***** *** ** run * ***** ******* and ***** ***** ******* Panasonic ******* *** *****, but *****'* ******** ** anything. **** **** ******** took **** ***** ********* divisions, ** *** **** into *** ****** ***** they ****** *** ***.

******* ** ** * Pigeon.

******* ******* **** ***** messed **

* ***'* ***** **'* fair ** **** ***** much ****** ****. ****** has * ****** ** problems ****** ***** **** stepped ** * **** ago. **** ****, *** would ** **** * company ** ********* ** bad ***** **** ******?

***, ********* *********'* **** *********** ********** ****** *** 2-3x ****** **** ****:

* **** *** *** the *********, *** * can't *** **** *'* surprised. * ***** ********** how **** ******** ****** in ********. ******* *** sales **** **** ***** customers ******** ** ** a *** ** ****** high ****** ******* ***** his "**********" **** *** summer.

"*** ******'* **** *** - ***'* **** ******."

* ***** *** * Pivot * *** ****, quite ********, ** *** exist?

* ****** ** * good ***** ******* ******* that ********* *****-**-***** ** Pivot3 *****. ** *****'* that.

** **** *******... ** Canada? :)

* *** ** ****** that **** -********* ****:

* **** **** ****... that *** * ***** deal. *** **** ** sell * *** ****'* priced **% ****** **** the ***********. ***** ***** estimated *** ****** *** the ********** **** **** turnover ***, **** **** bad ******** *********, **** preferred ******** ******** ****** than ****** ******* ********. John ** *****, **** was **** ** ********** for * **** ****. They ******* ** ****.. it's **** ** ** a ***** ** *** 17 *****. ***, * feel ***** *** *** good ****** ** ******.

* ***** *** * Pivot * *** ****, quite ********, ** *** exist?

**** **** **** *** customers *** ******* **** few. **** ***** ** not ********* **** *** it's *** *** *** either.

* *** * ***** 3 *** **** ***** at ** **** ********. However, **** *** *** a ****** ******* ***** for * ****** **** almost *** *******.

** *** ******** ********** storage ****** *** ***** large ********** **** ***** 150 - *** ****** deployments. *** **** ** my ******** ******** **** did **** **********.

* ***** ** **** them *** **** * new ***.

*******, **** * ****** with *#, * ***** met * ***** ****** that *** *** *******, helpful, ***. *******, * did ****** *** **** over.

*****, ** *** ***** the ***** ** ** with **** * ****** were *** ***** ****** and ***** *** **** could ** **** *** company ***** **** **** of ********* *********. **** includes *** *** ******* of *** ******* ***** team (*** ** **** got ***** ***** * or **** ****** ** their ****). ** ******* is *** *** ****** people- **** ******, *****, Bruce, *** *****, *** the ****** **** ******* in ** **** *****. I ***** **** *** company **** **** ****** was ******* * ***** mess, *** *** ***** lied ** ** *** a ***** ** ***** folks ****** *** ****** process *** ******. * mentioned **** *** ******** people *** ****** *** in ******* (**%) ***** is ****** * *******. Would **** **** **** to **** *** ***** tell ** **** *** be ****** ***** *** challenge **** *** ***** as ******* ** *********** my ****** ** ************ clothing *** ******* ** not ** *** *** help *** ******* **** such ****** ** *** for * ***** ****** control *******, ** ******** cost ** ******** ******* a ********* ********.

**** ****** *****. * have **** **** ******* there.

**** ******* ******** ****** ** * storage *******:

“** * ********* **** this, *** *********** ******** is ** **** **** strategic *** ********** ******* to *** ******** ** preserve ********* *** ** ensure *** ********* ******* to ******* *** *********, who ** **** ***** depend ** ** *** mission-critical ***********.

“** *** ********* *** size ** *** **** and ******* ******* ** our **** *******. ** have ********* *** *** operational ******* ** *** business ** **** ** can ******** ** ******, sell, ******* *** ******* customer *********. ** **** situation ******** *** ** explore *******, ** ****** committed ** ****** ******** and *********** ******* ** our ********* *** ********.

This ****** ****** *** ******* some uncharted waters for us all to navigate; we’re confident **** *** ******* **’** **** **** ***** ** ** ******* *** ***** *** ****** ******** ** *** ***** ****.” [emphasis side]

***, **'* ***********' ***** - *******. **** ** not * *** ***** either, ****** *** **** this ***** **** **** over *** **** *****.

******* **** *** ***, or *** ***. *** them **** ******* ** mid-April. *** **** **** happens **** *** ***** is ***% ****. ***** all, *** ****** ********* have ****** *** (******** left ** ******* ** 2020) *** **** **** no ****** ** ***** to *****, ** ***. Little **** ** ******* customers *** **** ******* when *** ****** *** your *********.

*** *** ***** *** the **** **** ** just *********! **** ***** all ***** ******, ****** back *** ** *** shares **** ****, *** have ********* * *** salespeople ** **** ****. The ****** ** ****** to *** *** **** business *****. *** ****** is *** ******** **********. Good **** **** ****, C *****. **** ** you ** ****** ******** yourself ** ***** ****** this **** ** ********* crisis.

***** **** *** **** finished **** *** *** all ** **** ** Athena.

**** ** ******'* **** own *** ** ***** of ******** ***** * bankruptcy...which **** ***** ***** a *******, *** ****** injection ** ***** *** a (*****) **** ****** that ******* ***** *********.

**** ****: ****** | C-SPAN.org

*********, **** ******* *** booked ****** *** ****** but ** *** ***** go **:

*********, ********* ****** *** news ** ****-*** ****** but * ** ******* how **** **** ****** the ******* ** ***** company.

* ** * ****** employee **** ******. * began ** ****** ************** in ** ******** ****. I *** ********** ***** raising ** ******** ** Sales **********. ***'* ***** the *** ** ****.

** **** * **** of ********. ******** ****** came ** ** **** when * ******** *****'* woes.

******, *******?

* ******* *** ******* choice *** ******** :)

******** ** *******,****** ******** ***** **** Off,******** **** **** ************

****, * ****** ***** them. ******** **** *** too.

** *** *** ******* of ***** **** *****!

* ******* *** *** referring ** *** ***** Crocs (****** *****). ** all **** *****, **** were ********** *********. *** I *** *** **** experience **** **** **** very *********** (** *** completely ***********).

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