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

The 2018 Surveillance Industry Guide on Jan 16, 2018
The 300 page, 2018 Video Surveillance Industry Guide, covering the key events and the future of the video surveillance market, is now available,...
Multicasting Surveillance Tutorial on Jan 04, 2018
Network bandwidth can be a concern for some surveillance systems. While improvements in video codecs, such as smart codecs for H.264 and H.265,...
Cabling Best Practices Guide on Jan 03, 2018
Surveillance cabling can be a major problem. Poorly installed and maintained networks are often costly, lengthy, frustrating ordeals to...
Multi-Imager Camera Guide on Jan 02, 2018
Multi-imager usage continues to grow, with most manufacturers now offering at least one model, making them an attractive option for covering wide...
QoS for Video Surveillance on Dec 29, 2017
Along with VLANs, QoS is one of the most misunderstood topics in IP surveillance networks. Many purported "experts" claim it is required in any...
Resolution Tutorial on Dec 28, 2017
Understanding video surveillance resolution can be surprisingly difficult and complex. While the word 'resolution' seems self-explanatory, its use...
Repositionable Multi-Imager Camera Guide on Dec 22, 2017
Multi-imager usage has been growing strongly over the past few years. Now, a new segment of multi-imagers has taken off, with many manufacturers...
STP vs UTP for Video Surveillance Tutorial on Dec 20, 2017
For many video system designers, deciding which ethernet cabling to use is a quick decision: go with the cheapest.  However, this overlooks the...
Lock Status Monitoring Tutorial on Dec 18, 2017
Just because your doors look secure does not mean they are. Unless access systems are using lock status monitoring, the doors and areas they...
Access Controller Software Guide on Dec 11, 2017
Properly configuring access controllers software is key to a professional access system. These devices have fundamental settings that must be...

Most Recent Industry Reports

Vivint Streety Video Strengthens Door Knocking on Jan 17, 2018
Vivint is famous (or infamous depending on your perspective) for mastering large scale door to door selling. The company has skyrocketed from a...
Axis: "It’s A Question Of Trust And Who You Want To Be Associated With" on Jan 17, 2018
Who do you trust? Who do you want to be associated with? Axis is raising hard questions to start 2018. In this note, we examine these questions,...
Software House Vulnerability Allows Inside Attacker To Open Doors on Jan 17, 2018
A vulnerability in Software House IP-ACM modules allows an attacker to potentially unlock doors, or perform other actions, on affected systems....
'Defiant' Hikvision 'Strikes Back' At WSJ And US on Jan 16, 2018
The fight is on. Hikvision and their owner, the Chinese government, 'strikes back' against the Wall Street Journal and US politicians raising...
Camera Course - Last Day - Save $50 on Jan 16, 2018
Today is the last day to save $50 - register now. Learn video surveillance and get certified. Save $50 on the course, ending this Thursday the...
The 2018 Surveillance Industry Guide on Jan 16, 2018
The 300 page, 2018 Video Surveillance Industry Guide, covering the key events and the future of the video surveillance market, is now available,...
Edward Snowden Haven App Tested on Jan 16, 2018
Global coverage followed the December 2017 announcement that Edward Snowden was leading a team developing Haven, an app "that leverages on-device...
This High Schooler Is Excited About His Future Security Career on Jan 15, 2018
A common lament is that smart, young people have little interest in surveillance systems. In fact, discussions like Should Talented Young People...
"First Of Its Kind" Stove Knob Alarm Sensor (2GIG) on Jan 15, 2018
At CES 2018, 2Gig/Nortek announced the Stove & Grill Guard, a "first of its kind" sensor in the security industry, allowing users to be...
Amazon Deep Learning Partnership With AgentVi on Jan 15, 2018
Amazon is aiming to grow its Kinesis Video Streams offering that "enables you to quickly build computer vision and ML applications" in the cloud....

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