Tyco Security Layoffs
By John Honovich, Published Jul 13, 2015, 12:00am EDTOne 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 Security Layoffs
Tyco explained to IPVM that:
"We have eliminated some positions as part of our ongoing effort to improve efficiency, so we can invest in growth through technology and innovation."
That is your boilerplate corporate statement.
Our sources indicate ~50 total employees were laid off across different Tyco Security brands, though Tyco declined to comment on a specific number.
Meaning
On the plus side, we do not believe that Tyco Security has significant problems nor that they shrinking significantly. Indeed, the acquisition of Exacq was a good move and surely has helped their weakened video side (i.e., American Dynamics).
On the negative side, these layoffs do signal a failure to meet expectations and a reduced outlook for future performance. Even Exacq has its challenges, as shown by its sales leader quitting the industry last quarter and Exacq offering unprecedented end of quarter discounts.
Across the board, Western manufacturers are mostly struggling, as Axis most recently and alarmingly showed.
Growth and Hiring
Incumbent Western manufacturers are overall slowing hiring but continued company funding and Asian growth are the key positive areas.
Just like the overall tech market, many video surveillance manufacturers have received sizeable investments in the past year, such as IC Realtime's $15 million, Smartvue's $15 million, DVTel's $9 million, etc. Such significant infusions will help those companies hire more.
Even bigger are the growth of Asian manufacturers international hiring. Hikvision alone has hired some ~100 North American employees in the past few years and continues to do so (e.g., De Fina and his team). And Dahua seems to be rapidly ramping up, if they can get their act together. Samsung Hanwha Techwin as well appears to be expanding. On the other hand, many Westerns have reservations about joining Asian run companies given fears of lower pay and preferences of those companies for Asian superiors, regardless of competency.
Looking Forward
We see Tyco Security's move as part of a larger trend and expect at least modest layoffs from more Western manufacturers over the next year, as growth becomes more challenging and camera pricing continues to decline.
