Pelco Layoffs September 2011

By: John Honovich, Published 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 confirmed that the layoffs are part of a broader corporate restructuring impacting many parts of Schneider Electric.

Read the official Schneider/Pelco layoffs statement.

This is the latest in a series of layoffs at Pelco in the past few years. However, this is the first one that Schneider reports is part of overall parent company restructuring. In June 2008, Pelco laid off 19 people and put the corporate jet up for sale. Then, in January 2010, Pelco laid off 100 employees.

While we do not know Pelco's specific financial state, we believe that Pelco, like almost all analog incumbents, are challenged to make the transition from analog to IP sales. The problem is the overall video surveillance market is not growing fast. While the IP segment is booming, it is coming mostly at the expense of the analog segment. A dollar made by an incumbent like Pelco on the IP side is often offset by a $1 or more lost on the analog side as they are shifting existing customers and often losing customers to IP only providers like Axis, Arecont, Avigilon, etc.

Update: The Fresno Bee is reporting [link no longer available] that approximately 50 people were layed off out of a total roughly 1500 - about 3% of the total workforce. The Bee notes that the layoffs were "scattered throughout the Clovis manufacturing plant and were not in one particular department."

2 reports cite this report:

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...
Pelco Cuts Costs and 1% Employees Layoff 2008 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...
Comments : PRO Members only. Login. or Join.

Most Recent Industry Reports

Resideo Stock Plunges 40%, CFO Ousted on Oct 23, 2019
The horrible year for the ADI / Honeywell Home spinout, Resideo, just got worse, with their stock plunging another 40% today. Not even a year...
Access Control Door Controllers Guide on Oct 22, 2019
Door controllers are at the center of physical access control systems connecting software, readers, and locks. Despite being buried inside...
Alarm.com Acquires OpenEye on Oct 21, 2019
Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye. In this note, based on...
Government-Owned Hikvision Wants To Keep Politics Out Of Security on Oct 21, 2019
'Politics' made Hikvision the goliath it is today. It was PRC China 'politics' that created Hikvision, funded it, and blocked its foreign...
Integrated IR Camera Usage Statistics 2019 on Oct 21, 2019
Virtually every IP camera now comes with integrated IR but how many actually make use of IR or choose 'super' low light cameras without IR? In...
Alarm Veteran "Demands A Criminal Investigation" Of UL on Oct 18, 2019
The Interceptor's Project pressure against UL continues to rise. Following Keith Jentoft's allegation that "UL Has Blood On Their Hands", Jentoft...
Camect "Worlds Smartest Camera Hub" Tested on Oct 18, 2019
Camect is a Silicon Valley startup that claims the "Smartest AI Object Detection On The Market", detecting not only people and vehicles, but...
Hikvision Global News Reports Directory on Oct 17, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Camera Calculator V3.1 Release Improves User Experience on Oct 17, 2019
IPVM has released a new version of our Camera Calculator, V3.1, with significant user experience improvements, a new development plan, and an...