Hikvision USA Starts Layoffs

The sales rep we worked with resigned, along with a couple more.  Not sure if it was layoffs are just employees jumping ship before the iceberg makes impact.  I know the few that we worked with have found new positions with other manufacturers, and I hope the others do as well.  Not their fault at all, good guys and gals that deserve a good future.  I'm sure Yugo salespeople felt the same way many years ago.

Hikvision NA = Hikvision Negligent Accomplice

Will this affect salespeople that are technically working for “dot”?

*short for hikvision dot com

Secondary Major Concern Going Forward:

Will the 2nd-tier China-based manufacturers also suffer some backlash by association and start getting picked off like tin ducks at a carnival shooting gallery?

This could get interesting since a lot of security gear is made in China, including not only cameras, but more specialty items like Biometric readers/controllers that have networking capability and firmware and software designed in China. 

How deep will the "Made in China" tarnish go?

With 240+ votes, the average estimate is ~200 employees or a drop of roughly 50% over the next year:

It ultimately depends how much Hikvision wants to spend / loss but 200 employees would still be a very significant number for even a large SMB focused surveillance manufacturer.

The layoffs were just telemarketers that were proving to be nonproductive.

Both HIK and Dahua are large, well financed companies. You can expect them to have an aggressive plan to try to reverse the ban. They have deep pockets without even turning to the Chinese government. 

Those who believe they are not good for our industry should encourage end-users to move to other suppliers. 

Agressive price ice cutters like Hik only hurt innovation from smaller startups as they use their pricing power to drive out newcomers. 

If this trade war continues as well as the very clear fight for "US made" products and "no Chinese" continues , then I do not see that Hikvision has a place in the US market in a relatively short time.

25% tariffs, or whatever the final number is, and ban form public contracts will be to significant compared to competitors.

Not sure if this is a new strategy by Hik but I've leaned that if a Distributor signs up with Hik they cannot sign up with any other manufacturer there after. Yet Hik can appoint as many additional Distributors within the same territory as they wish further diluting the margins for existing Distributors etc.

UK Sales figures are under pressure as well as many recently hired Sales guys are starting to realize or have realized that the targets they were given are/were unattainable. Some have left already and others were let go. The bubble is slowly deflating at the moment, it's a matter of time...

Another positive development is the fact that specifications and tender documents are appearing with separate Cyber Security clauses stating that any brand involved in 'recent' security breaches will not be considered.

What has been happening in the US has not gone unnoticed at the other side of the big pond and it is having an impact.

Pauline outs forward a very good case that is totally reflected in my experience. As a salesman - I find ways to discredit competitors who fall into the category she describes. this could be by highlighting the lack of cyber accreditation (ISO:27001), the unwillingness to pass the manufacturer warranty to the client (usually 3 years), lack of experience on enterprise projects and the list goes on.

It may be hard for some to comprehend, but a Hik system designed, specified, installed, configured and maintained correctly is far less menacing than suggested. 

The issue is that the real story is Trump's imposition of tariffs in an attempt to "make the  US great again" and discredit/punish/bully trading partners. China is bearing the brunt of this and Hik are part of that equation. With Trump off the scene, a new administration would seek to repair the colossal international damage caused. The issue for Hik is how to sail around this - do they seek a short-term solution or do they play the long game? 

For my money, I'd say Hik will play the long game and wait until Trump is no longer. They have deep pockets and a strong worldwide market. They will ride the storm with damage limitation and accept that the US is a short-term problem. A new administration will be seeking to rebuilt relationships and create new jobs and wealth, without raising the climate of fear and hate as Trump has done. Hik will then engage and build manufacturing and R&D facilities in targeted areas in the US in return for the relaxing of sanctions, bills etc. at the same time as partnering/acquiring a domestically respected (US) IT partner.

Time will tell....but in the same way as the UK acquisition of Pyronix in the UK surprised a lot of people, their vision was clear. I see something happening similar in the US - once Trump is taken out of the reckoning.

NOTICE: This comment has been moved to its own discussion: Hikvision Play The Long Game

Source forwarded an internal email from Hikvision noting their 'closing the outbound call team', and discussing part of recent employee changes:

Organizational Changes to Outbound Call Team Team Hikvision USA and Canada, In an effort to keep the field sales team informed, we would like to update everyone that we have made some organizational changes to the inside call teams. With renewed focus on stronger sales support, we will be adding to our outside direct customer contact team. Our inside sales support team will remain as is and will continue to support our outside teams sales efforts. We will no longer be focusing as much time on outbound marketing calls and as such have we have closed the outbound call team. This change in no way effects our sales team headcount or tech support teams, and is only meant as a strategic move towards our increased effort in maintaining superior customer support. The restructuring was decided upon so that our sales team can better assist and focus on our ever-changing customer base. This shift ensures that there will be more local Sales Associates in the field who will be available to provide imperative face time with our North American customers. During this transition, the inside sales team is working diligently to make the shift as smooth as possible, while providing the field team with the finest inside sales support. Please refer to the attached inside sales team list for resources in your respective territories. Despite closing the outbound call team, inside sales is dedicated to having the best turnout possible on roadshows and special events. In addition to outbound call campaigns, we are still determined to deliver the level of support that was provided before. Some of those tasks include, but are not limited to the following: • Product recommendations • Processing project registrations • Answering general sales email inquiries • Providing pre-sales support on incoming calls • Creating event flyers If you have any additional questions about this change, please contact human resources at hr.usa@hikvision.com. Kind Regards, Eric Chen General Manager, Hikvision North America 

Now, 13 months later, Hikvision's USA employees have declined but slowly, from what we have seen, through attrition. However, Hikvision has not done any wide cuts since. Indeed, we hear Hikvision USA has tried to stop people from leaving.

Now, with the sanctions in place, this will make things tougher but the past year indicates that Hikvision is trying to hold on in the US, despite increasing costs and decreasing sales.