A Response to AKC’s Massive Layoffs
By Tom Grabe
As many of you know, AKC announced that they were laying off a significant portion of their staff yesterday. What you may not know is their staff had very little time to prepare sine the cuts came quickly without much notice. The letter from Dennis Sprung is copied below along with another more general message to some in the fancy. You need to read them to understand what is happening at the organization that is supposed to be leading our sport through tough times.
My first reaction, upon hearing about the layoffs, was, “I wonder if the president, vice presidents, and others in upper management took a pay cut?” Did the president forego his salary like so many other CEOs of companies large and small have done in recent days? To my knowledge, the answer is a resounding ‘No’.
The next question that came to mind is, “How is that favorable lease on the NYC offices working out now?” I have never been convinced that having upper management 500 miles from the bulk of staff and operations is a winning game plan for a small company, but what do I know? I do know that nearly 25 years ago then-president Judy Daniels wanted to combine operations in Raleigh and she didn’t have a job for long. My guess is that the rent on those lovely NYC offices would certainly offset a good portion of the salaries cut on Friday.
Beyond executive compensation and rents, I am sure there is some other ‘fat’ that could have been cut in an attempt to save the jobs of the loyal AKC employees who were furloughed. I am sure a quick scan of the P&L and balance sheet would have given anyone with a basic knowledge of accounting and cash flow some options about where to find the funds to pay those people. I wonder how much money would be saved if the June and September delegate meetings were turned into conference calls or video conferences (done professionally as the big corporations and banks do)?
Finally, the most disappointing part of this whole story, to me, is the way the furloughs were implemented. I know for a fact the AKC reps were told the news via conference call on Thursday–just 24 hours before the end of their careers at AKC. There was no two weeks notice, no severance pay, no real appreciation for their service. The bonus was that they get to keep their health insurance through the end of April–in the middle of a historic pandemic… ‘thank you for your service; now you are on your own.’ This is no way to treat anyone who you have employed whether you like them or not. It says a lot about the management ethic at AKC.
There are so many ways this could have been avoided. There are SBA loans with incentives to retain employees. Maybe AKC was not eligible, but if they were not, what about just taking out a loan to retain the employees you have for a month or two to see how these events develop, then make a decision? How about asking EVERYONE at AKC to take a small pay cut to help retain the employees being fired? How about showing some concern and empathy for the people you are sending away?
I hope everyone in our sport understands what is happening at our beloved American Kennel Club. The true test of a leader is how they react when things go south and AKC leadership has failed this test miserably.
Letter From Dennis B. Sprung, AKC President & CEO
Short URL: https://caninechronicle.com/?p=181532
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on Apr 4 2020. Filed under Current Articles, Featured.
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st louis is looking pretty good right now, huh?
let’s bring the museum BACK to st louis where it BELONGS-and – PLEASE let someone else ‘take the lead’ running the museum.
the museum would have been very successful in someone else’s hands-
for general knowledge–akc was only paying $1.00/yr to st louis county for the building in queenie park.
I posted this on Facebook a few days ago, feel free to publish it.
In light of the AKC layoffs. The easiest way to save money is to lay employees off. There is basically no real thought process and unfortunately the first thing a lot employers do. It’s a short term solution during down times.
True leadership looks at every other option possible. These options include but are not limited to; temporary hours reduction for hourly employees, postponement of all non-essential travel, non-essential training, supply reduction, outside vendor services, etc.
Leaders look for all possible ways to keep their employees employed. Some of these decisions are difficult. It is of the utmost importance to be communicated clearly, openly, and honestly.
Nothing hurts morale in an organization than not being honest with employees, trust that they will respect your decisions if laid out clearly. And dont be afraid to let them know what lead to these decisions.
Once things begin to improve and you are able to resume normal operations you will have a more loyal and dedicated workforce.
Now more than ever it is vital to help your employees through this.
Be a leader, that’s what they expect of you.
This is why I became disenchanted with the AKC a number of years ago. Deciding that the ruling elite wanted to stay in expensive New York instead of consolidating ALL operations in Raleigh where they could save MONEY. I was extremely disappointed when they turned on Judy Daniels and the way they treated her. She honestly cared about the breeders and exhibitors of the fancy. I experienced that personally when she took the time out of her busy schedule to personally help me, a lowly breeder/exhibitor, sort out an issue. I came to respect and like her very much. I was very dismayed and offended with the way they treated her in order to thwart her efforts to make the AKC a more friendly organization and less of a good old boy organization. And now they are showing their true colors again in the way they are treating their field staff. I understand that even with the best of management they may not have been able to avoid layoffs but the way they handled it was very poor at best. Just my opinion.
While this is sad, the predicament AKC finds themselves in is no different than most every other company in America, and the world, today. Many businesses have been forced to close their doors during this pandemic. Many have been able to find alternate ways to work to be able to keep some of their employees going. Yes, it would be nice, even proper, for the upper echelon to take pay cuts to help keep health insurance in place for all furloughed employees during this time. I personally work for a small company that is considered an essential business. Even with this, many of us have had our hours, and pay, cut in half. Many others were furloughed and had to apply for unemployment. The writer of this article, at least as it hit me while reading it, comes from the view point that the AKC is unique in this situation. Wake up! They aren’t. This is a world wide issue that is going to devastate and wipe our many businesses. And unfortunately, the repercussions will, most likely, last for years. I have one question for the author: If you feel this strongly about the AKC and their management decisions that have evidently gone on for years, have you written an article and called them out on it before? If so, GOOD! If not, then you are part of their current crisis situation since you seem to have had knowledge that most of us didn’t. Continued prayers for all whose livelihoods are affected by this pandemic.
NYC offices. Ivory tower.
I’ll back Tom on this one. Jim, you’re correct – AKC is not alone in this predicament. However, it appears that non-profits DO qualify for CARES Act. If the AKC cares about their employees, they can apply for help. My family-held manufacturing company is in the process of applying…it’s sort of complicated. But what else are you doing right now??? Support your employees!!!! The bottom line is that ALL employers need to do everything they can to support their employees; the good news is, the government is actually helping. However, the early bird gets the worm – employers need to apply NOW!! There are limited funds in this first bill. I hope AKC officials see this. https://independentsector.org/resource/caresact/
Why is anyone surprised? As a kid, all my family’s dogs were AKC registered and we competed in AKC obedience. However, as an adult I watched the organization turn a blind eye to “large scale breeders”/ puppy mills. Why? Those breeders produce a lot more dogs to register than legit breeders. They’ve already shown how they deal with financial difficulties, and it isn’t pretty. I sincerely hope AKC finds a way to survive. However, I’m not optimistic. Especially as I see their lack of action in educating their members as to the dangers of excessive inbreeding and their acceptance of deformed dogs in the show ring (dogs that can’t breath normally and some that can’t even walk normally, GSD).
Never have like that AKC offices are in some of the highest rent districts in the country. Need to climb down from their golden perches and move back to Raleigh and lower all the bills.
If this letter is actually what happened I’m very disappointed in the AKC, they put many rules and regulations on each one of us. The company should of been more prepared this virus has been going on for weeks. The management should of been forming a solution to help its employees before a mass layoff
The prices for registration keep going up, costs for entries are up, instead of working with a decent hotel chain they partner with roach tel 6. Less is getting done, yet the top gets fatter. Time to get rid of those in charge, and put in knowledgeable people willing to better our fancy. We are supposed to be purebreds, yet mutts are creeping into our events . What happened to you AKC? Have you forgotten why we were formed?
Think the response is right on. My impression for some time has been upper management was just interested in their soft jobs in an expensive city.
I Would like to know if Dennis B. Sprung is taking a paycut. The AKC has treated their field reps poorly for years. And yes, it’s stupid to have the New York offices.
How sad and disappointing these actions by the AKC appear. I am confident that there was fat at the top that could have been trimmed.
I hope everyone laid off/fired will survive and even advance themselves from this impersonal actions. I will keep them in my thoughts and prayers. God bless us all.
I am not surprised. AKC is a cash cow. I am relatively new to the sport of conformation. But that being said, I show French Bulldogs. The breed that seems to be just growing in popularity by leaps and bounds. AKC has no problem registering oodles and oddles of DQ colored dogs. It seems now there are more French Bulldogs that are being touted as “rare” than the standard. When in truth, the breeders that health test, breed to standard, and adhere to the breed standard are the ones that are “rare.” AKC could surely pay staff for a while on just the money collected on registering these abominations. We won’t even talk about the fact that registrations keep going up. AKC is supposed to be the GOLD STANDARD, yet look at how they’re running things. They don’t even go by the standard they accept and list from parent clubs.
Not surprised by AKC actions but all wrong
Never do u cut health insurance in times like this. Upper mgt needs fired with no severance. Eliminate NY city hi price offices. This organization is supposed 2 b 4 the betterment of dogs & it sure doesn’t look that way. Very disappointed but not surprised.
Akc has certainly gone to the dogs.So sorry you have lost so much of your revenue.This just gives you an excuse to raise the fees and registrations. If you don’t wake up in a few years you won’t have a well respected club. It is a shame that you have let all these odd colors and bad breeders register dogs. Look around it is the senior community that is keeping you alive.There use to be families at shows . Just continue putting your hand in every ones pocket and there won’t be anything left.Keep promoting handlers.It’s all about the money .Just wait. People won’t be able to sell pups at this time so they will cut back on breeding.It would have been nice for managment to find another way to keep their employees.Pay cuts from top executives would have shown concern for the fancy in general. Having experienced people is very important.Wake up.
WOW. Waiting for the BK filing?
I agree, Tom. AKC needs to consolidate all offices – all offices in same building or complex makes executive, administrative, operations and overhead costs much lower. It also makes communication, mission-building and morale immeasurably easier. Our organization and affiliated clubs need to refocus on providing value to members. I don’t agree with AKC, whose core mission of promoting purebred dogs through kennel and purebred dog registration, promoting mixed-breed companion dogs through sports. It encourages puppy mills, uneducated and unethical breeding of puppies for all the wrong reasons. Puppy sales have gone through the roof during COVID19 shutdown – sadly many will end up in rescue, shelter or abusive hands in near future as owners stress, domestic violence increases, and owners return to work/school. This could have been a meaningful moment for AKC to educate public via public service announcements and ad campaigns about caring for/owning puppies and dogs. Oddly, it should be the time for AKC to be the caring and sensible voice and heart of AKC breeders/owners. The result may be a pet market flooded by high-priced, poor quality puppies from poor quality breeding. There are so many issues AKC needs to prioritize more than high-cost rent, inefficient operating expenses and overhead. They can’t serve member priorities if there’s no one there to turn the lights on.