JCI / Tyco Security Products Layoffs

By John Honovich, Published Jun 05, 2020, 04:42pm EDT (Info+)

Johnson Controls / Tyco Security Products has confirmed COVID-19 related layoffs, expanding upon the April coronavirus cuts the company previously made.

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In this note, we share feedback from JCI, evaluate the impact on the company, consisting of Exacq, Software House, Kantech, DSC, and more.

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Comments (6)

This is unfortunate to hear. This does not bode well for the industry overall. Most small business have the payroll protection program to prop them up and encourage a return to nearly full employment before the end of the year. Those same pseudo-protections do not apply to large businesses.

Agree
Disagree: 4
Informative
Unhelpful: 2
Funny

COVID-19 is the reckoning for these massive companies with huge executive bonuses, huge overhead, and huge debt. This is what happens when you bet everything on the future being bigger than the present, especially when your product lines lack innovation and competition is more fierce than ever.

The demand for security technology and services is still there. This may be region dependant, but the smaller integrators I work with ($10M and under) are busier than they were in 2019.

Agree: 9
Disagree: 3
Informative: 1
Unhelpful
Funny

I am a happy and satisfied JCI employee. I am not here to defend my organization. It may be a shareholder decision to cut off the division in question, under performing since years..You and I don't know and shouldn't care about it.

All other divisions that I know are still performing and have more than 3 to 4 months of backlog which i believe is much better than small to mid size integrator that you are referring to. Also regardless of several 3rd party solutions and competition; JCI's other legacy security brands have larger visibility and are getting stronger everyday.

Further to your understanding on small footprints; if world believes and understand like you, we would not have seen Google, Microsoft, Apple, Amazon, SpaceX etc. No one wants to stop growing business with a fear of falling harder.

Agree: 2
Disagree: 3
Informative
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Funny: 3

Great statement and observation. I have said for years that integrators and customers alike should investigate their potential security component suppliers and go way beyond the obvious. Sure the products could appear solid, you like the rep, you feel comfortable in the partnership. The deeper dive would be to look at the current C-Suite of the company..If you see a bio pattern of "serial entrepreneur" with a long history of "have idea, raise VC funding, hit the market for a few years, sell and move to the next" you should be concerned. If you are looking to partner with a company that is a division or subsidiary of a large corporation, try to learn where they sit financially with the rest of the company. If the security/safety division is the least profitable you should be concerned. Companies don't spin off companies that are making money! COVID will change the landscape somewhat but the big corporations will most times find a way for more funding and will fall back to the old habits.

Agree: 4
Disagree: 2
Informative: 1
Unhelpful
Funny

am curious how this will effect service and support on Exacq, Software House, Kantech, DSC,

Agree: 3
Disagree
Informative
Unhelpful: 2
Funny

how could broad cuts ever effect service and support positively?

Agree: 7
Disagree
Informative
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