Pelco Cuts Costs and 1% Employees Layoff 2008

Author: John Honovich, Published on Dec 02, 2008

Summary: 19 employees cut, salary freeze implemented, corporate jet to be sold, no more personalized license plates.

All in all, this is a very small cut. Relative to the cuts that video surveillance companies are making, these cuts are very shallow. Verint, March, DM and many other small private organizations have made far more significant cuts.

Watch a video and read details of Pelco's cuts.  The local news reaction seems to be over the top. I suspect that is because Pelco is a big, if not biggest employee, in its region.

UPDATE September 28, 2011: New Pelco / Schneider Electric layoffs.

What Does Pelco Cuts Mean?

As I examine in my company risk assessment in the 2009 Video Surveillance Industry Guide, I think the recession will have a significant impact in a variety of sectors with analog focused companies requiring deeper cuts because of the lower starting growth rate.

While you can always claim individual company factors (e.g., Pelco's acquisition), I think Pelco's cut should make clear to everyone that the recession will have an impact on the video surveilllance industry.  Of the traditional video surveillance companies (i.e., analog/CCTV), Pelco is a clear leader. If Pelco needs to cut costs, then all the analog/CCTV companies are likely to have to make cuts - many much more severe than Pelco's.

What Will Happen Next Year?

As we discussed this week in this examination of the recession's impact, the US and EU economies are likely to continue to drop significantly from now until at least the middle of next year. This will have a negative impact on almost all video surveillance companies.  IP video companies growing at 40% the last few years could see their growth drop to under 20%.  Analog companies that were only growing at 10% per year the last few years could drop to -10%. And if your growth is negative, layoffs and spending cuts become almost inevitable.

While I don't think the Pelco cuts today are significant in themselves, I do think industry professionals should view this as a clear signal that the recession is impacting the video surveillance business.

 

4 reports cite this report:

Pelco New Layoffs But CEO Focused On Growth on Jun 08, 2016
Pelco has laid off 43 workers, raising more fears about further decline of the company. However, IPVM has spoken with Pelco's CEO and he says they...
From the Pelco Jet to the Ex-Pelco Yacht on Mar 24, 2012
The Pelco jet was a symbol of the old Pelco. Long gone, the new Pelco is a far less powerful and ostentatious force. Since the $1.5 Billion...
Pelco Layoffs September 2011 on Sep 27, 2011
Schneider Electric has announced layoffs, aka a 'workface reduction' for the Pelco division and Clovis facilities. We spoke with Schneider and they...
Pelco Layoff Examined on Jan 12, 2010
Pelco has announced a layoff of 100 employees, or approximately 4% of their global workforce of 2400. Pelco cites 3 main factors: "the result of...

Related Reports on Guide

Hackable 125kHz Access Control Migration Guide on May 19, 2017
Despite being one of the most popular credentials, 125 kHz credentials are easily copied and insecure as we showed in our test results, video...
Technician Personal Protective Equipment (PPE) Guide on May 12, 2017
Technicians encounter multiple hazards when running wires and installing security devices. Wearing personal protective equipment, or PPE, helps...
Burglar Alarm Partitions Guide on May 10, 2017
Many burglar alarm systems have a single designated level of access for users. A user can arm or disarm the entire alarm by entering a single code....
Alarm Circuits Guide on May 09, 2017
Alarm circuits are a fundamental element of wired burglar systems. Designing the alarm circuit greatly affects its performance. In particular,...
Last Day - IP Networking Course May 2017 on Apr 26, 2017
Today is the last day to register for the May IP Networking Course. This is the only networking course designed specifically for video...
Splicing Alarm Circuits Guide on Apr 23, 2017
Alarm installers commonly connect multiple sensors to a single zone. They do this by splicing the wires together. In this report, we will explain...
Burglar Alarm Strobes Guide on Mar 31, 2017
Strobes provide visual notification of alarm incidents, as sirens are used to give audible notification. Using a strobe gives alarm users and alarm...
Burglar Alarm Sirens Guide on Mar 27, 2017
Sirens are used to alert users to an alarm condition. In this note, we examine how to choose, locate, and install alarm sirens, including Siren...
Lock Keyways For Access Control Guide on Mar 23, 2017
Lock keyways can be the difference between a lock working or not. Understanding keyways is important for access control. Indeed, a member recently...
Burglar Alarm Screens Tutorial on Mar 14, 2017
Many residential alarm subscribers arm their alarms before going to bed at night. Wiring window screens allow these subscribers to leave their...

Most Recent Industry Reports

Axis Criticizes OEMs: "When You Buy An Axis Camera, An Axis Camera Is What You Get!" on May 19, 2017
When you buy a Honeywell camera, you likely get a Hikvision, Dahua or some other company's product. The same goes for easily 100 different...
Hackable 125kHz Access Control Migration Guide on May 19, 2017
Despite being one of the most popular credentials, 125 kHz credentials are easily copied and insecure as we showed in our test results, video...
Forget The Backdoor, "ALL HIKVISION PRODUCTS" On Sale on May 18, 2017
Less than 2 weeks after the Hikvision Backdoor was confirmed, Hikvision has launched a sale "ON ALL HIKVISION PRODUCTS". In this note, we examine...
Amazon Techs Installing IP Cameras Tested on May 18, 2017
In 2015, Amazon started offering video surveillance installation. Now, Amazon has made it a lot easier, with automatic add-on options and...
Hanwha Recorder Vulnerability Analyzed on May 18, 2017
ICS-CERT has released a vulnerability notice for Hanwha SRN-4000 recorders.  Hanwha provided additional information to IPVM about this issue,...
ShotSpotter To IPO, Facing Low Revenue and Losses on May 17, 2017
A rare event for North American security manufacturers is upcoming. ShotSpotter is planning to IPO on the NASDAQ, aiming to raise $34.5...
DMP Video Doorbell / Access Reader Examined on May 17, 2017
Consumers increasingly demand video doorbells, with "doorbells selling like hotcakes, everyone wants a doorbell", according to ADT's CEO. At ISC...
FLIR Is Giving Away $3,000 Demo Kits on May 17, 2017
Everybody likes free stuff, and FLIR is using that concept to attract dealers by giving them $3,000 worth of demo gear for attending a...
Shark Tank Startup Guard Llama Mobile Panic Tested on May 16, 2017
A Shark Tank TV show appearance has attracted big attention for Guard Llama, a security startup touting a 'panic button' paired with mobile app...
Axis Beats Avigilon Growth Rate (AVO Q1 2017) on May 16, 2017
In what is likely the first time ever, Axis beat Avigilon's revenue growth for Q1 2017. Inside this note, we examine Avigilon's Q1 2017 financial...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact