Managed Services News
“There is no change in benefits for all Dattos. Period,” writes Kathy Wagner, Kaseya’s chief financial officer.
Kaseya’s chief financial officer, Kathy Wagner, clarified things on Monday morning and said there would be “no change” to Datto’s benefits package after Datto founder Austin McChord posted on social media social that Kaseya was making changes that were detrimental to the business.
McChord, who is a former CEO of Datto, in a GitHub post, accused Kaseya of destroying the Datto culture and making significant changes to employee benefits, such as reducing 401(k) matches, furloughs maternity/paternity benefits and paid leave. The release came two weeks after Kaseya completed its acquisition of Datto for $6.2 billion, making it arguably the chain’s biggest software provider. He said he spoke out because “many members” of Datto’s team were “deeply appalled” by Kaseya’s changes.
Wagner’s internal email was shared on Reddit to allay employee concerns and set the record straight.
“Unfortunately, over the weekend false information was posted on social media regarding your future at Kaseya,” Wagner (pictured above) wrote in the letter. “This information was ‘based’ on information from secondary sources, possibly derived from the interpretation of what our CEO, Fred Voccola, told several town halls last week when speaking to our Datto employees.
“First, there is no change in the benefits of any Datto Period,” she wrote. “To address specific concerns that have been posted online, there is no reduction in the 401K match, no change/reduction in maternity/paternity leave benefits, nor change/reduction in PTO for Datto employees This was made very clear by Fred at the Boston and Norwalk town halls, the FAQ that has was sent at the official closing of the agreement and which is reiterated again here in this email.[Related: KASEYA CEO ON FINALIZED DATTO DEAL: OUR JOB IS TO MAKE SURE WE ‘BUILD THE BEST FREAKING PLATFORM FOR OUR CUSTOMERS’]
“Fred also directly stated that the culture of offices being gathering places for employees, events, social and community time, etc. will not only be restored but augmented, as offices are meeting places for employees and community service is a staple of the pre-Datto Kaseya Culture.
She also said there was no 30% spending cut target, as McChord alleges, or any targeted figure.
“As Fred mentioned, there are no mass layoffs planned. I repeat, we’re not going to come in one morning and cut the team by X percent, that’s NOT happening,” he said. she stated.
There could be job cuts due to job redundancy, she said, using Voccola’s example of the departure of Datto CEO Tim Weller because the company hasn’t need two CEOs.
“However, as Fred made clear, Datto’s acquisition plan was to increase investment in products, technology, customer support and success, not reduce them,” Wagner said. “The financial business case for Kaseya’s acquisition of Datto was one of value creation via GROWTH, as opposed to a financial business case of value creation via cost synergies. Growth is achieved through investment. As Fred made clear, as a combined entity we are looking to add over 1,400 employees over the next 12 months. This is the exact opposite of any generalized downsizing of our workforce. These are the facts.
CRN has reached out to Kaseya and McChord for comment.
“Change is hard,” Wagner said. “As humans, we are wired to resist change. However, change is a constant thing in life, and more often than not, change leads to progress. The acquisition of Datto by Kaseya creates tremendous opportunities for employees as well as customers. The combined company now spends over a BILLION dollars a year on “things” (people, technology, etc.) and those things will enable our company to deliver the best technology to our customers, with the absolute best customer service that will enable our MSPs to be the most successful MSPs in the world. In doing so, we are creating massive, life-changing opportunities for thousands and thousands of our company’s employees; financial opportunities, professional growth opportunities, etc.
“If you have any questions about your future at Kaseya, or need further clarification of any facts, please contact your managers or directly the member of the leadership team who oversees your respective departments. Or me.”
Mark Essayian, president of MSP KME Systems based in Lake Forest, Calif., and a partner of both Datto and Kaseya, said McChord was “fully within his rights” to say what he said, although got the information second-hand.
“I absolutely respect what he’s done. I absolutely respect that he’s upset,” Essayian said of McChord’s position. “He doesn’t want to run a business that way. sold it.
He doesn’t think Kaseya will ruin Datto’s culture because “it’s too much money”.
And while he respected McChord’s actions, he would have proceeded differently.
“I might have reached out to Kaseya and said, ‘Hey, what’s going on? But that’s my management style,” he said. “Does it actually serve the partner on either side? No, it actually makes us suspicious on all levels. Welcome to the ugliness of mergers and acquisitions. »