VSIP and involuntary RIF in Lenscrafters
Lenscrafters is in a tough trouble. An internal Lenscrafters memo says that the company has to make strategic choices and hard decisions that will result in a lean, efficient and effective go-forward organization. This is exactly describing the VSIP program launched by Lenscrafters. By some people, this program is considered as “cut the fat”.
According to officials from Lenscrafters, the VSIP program involves two parts, recognizing and rewarding those contributive associates on one hand and streamlining work and reducing costs on the other hand. Similar to an early retirement program, VSIP has actually been successfully implemented by some other companies. This time, Lenscrafters set the eligibility criterion of VSIP at 50 years of age with 5 years of service. This is the strict eligibility criterion and the company will not expand it, so that associates that do not meet these requirements can not volunteer for the program.
The company will announce approved participants in the VSIP on December 7. After direct communication with those participants, the company will cascade the information through the CSC Leadership Team to departments and teams. In fact, not all associates eligible for the 50/5 requirements will receive the VISP offer. Some roles in Manufacturing and Engineering, EyeMed Sales, Service and Production will be excluded.
But associates ineligible for VSIP program can volunteer to be part of the Involuntary RIF and receive severance benefits. These people can be included in the involuntary reduction in force and should make a final decision after the VSIP program has finalized on December 7. Once being terminated, this group of associates can receive severance benefits. Before that, associates considering the Involuntary RIF can see Luxottica’s Standard Severance Benefits Plan, with which they can carefully balance potential gain against loss.
The VSIP and involuntary RIF programs aim to cut off approximately 10% to 30% of the current workforce of CSC. After these two phases, the company will be able to maintain flat General and Administrative expense.