Tyco Security Layoffs

By John Honovich, Published Jul 13, 2015, 12:00am EDT

One of the biggest security manufacturers, Tyco Security Products, owner of brands like Exacq, Software House, American Dynamics, conducted a layoff.

In this note, we examine what happened, what this means and who is still hiring.

Tyco ******** *******

**** ********* ** **** that:

"** **** ********** **** positions ** **** ** our ******* ****** ** improve **********, ** ** can ****** ** ****** through ********** *** **********."

**** ** **** *********** corporate *********.

*** ******* ******** ~** total ********* **** **** off ****** ********* **** Security ******, ****** **** declined ** ******* ** a ******** ******.

*******

** *** **** ****, we ** *** ******* that **** ******** *** significant ******** *** **** they ********* *************. ******, the *********** ** ***** was * **** **** and ****** *** ****** their ******** ***** **** (i.e., ******** ********).

** *** ******** ****, these ******* ** ****** a ******* ** **** expectations *** * ******* outlook *** ****** ***********. Even ***** *** *** challenges, ** ***** ***** ***** ****** ******** the ******** **** *************** ******** ************* *** of ******* *********.

****** *** *****, ******* manufacturers *** ****** **********, as**** **** ******** *** alarmingly ******.

Growth *** ******

********* ******* ************* *** overall ******* ****** *** continued ******* ******* *** Asian ****** *** *** key ******** *****.

**** **** *** ******* tech ******, **** ***** surveillance ************* **** ******** sizeable *********** ** *** past ****, **** ** IC ********'* $** *******, Smartvue's $** *******, *****'* $9 *******, ***. **** significant ********* **** **** those ********* **** ****.

**** ****** *** *** growth ** ***** ************* international ******. ********* ***** has ***** **** ~*** North ******** ********* ** the **** *** ***** and ********* ** ** so (*.*.,** **** *** *** team). *** ***** ***** to ********* ******* **, ** **** *** get ***** *** ********.************* ******* ** **** appears ** ** *********. On *** ***** ****, many ******** **** ************ about ******* ***** *** companies ***** ***** ** lower *** *** *********** of ***** ********* *** Asian *********, ********** ** competency.

Looking *******

** *** **** ********'* move ** **** ** a ****** ***** *** expect ** ***** ****** layoffs **** **** ******* manufacturers **** *** **** year, ** ****** ******* more *********** *** ****** pricing ********* ** *******.

Comments (7)

One of the biggest security manufacturers, Tyco Security Products...

Indeed. In terms of security related employees, who is bigger?

Tyco Security Products claims 2,500 employees.

Hikvision claims 8,000+ employees.

Axis reports 2,061 employees as of the most recent report.

We do not track employee counts that closely so I am not sure. Note: TSP includes access and intrusion divisions, not just video. I think UTC Security and Honeywell Security are in a similar range of employees as TSP.

Since Tyco Security does access control too, I'm not sure the "asian camera vendors are eating our lunch" problem applies. Since they've done (more or less recent) acquisitions I think that a minor layoff could be a classic "assimilation" artifact.

If it is an 'assimilation' artifact, the way they have handled it is awfully poor, especially coming right after the end of the quarter, which signals missed numbers and weakened outlook. Also, no one close to the company has yet claimed to us that it was due to 'assimilation'.

Our sources indicate ~50 total employees were laid off across different Tyco Security brands, though Tyco declined to comment on a specific number.

I was told that it was more like 125-160 total across the board at TSP.

I heard different numbers, I went with the low one to be conservative.

With so many divisions / groups, it is hard to tell for sure.

What were you told was the reason / rationale for the move?

The nature of the people who were let go were pretty spread out - sales, product management, engineering, etc. - leads me to believe that it was purely a cost cutting move.

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