Thread regarding Resideo Technologies layoffs

Putting this round of layoffs into perspective

To put this round of layoffs into perspective, prior to the spin-off, there were supply chain issues. (This is noted in the lawsuits.) I have first-hand knowledge that it wasn't one group's fault per se. Those issues had been precipitated by the senior management directive to minimize working capital (i.e., component inventory) therefore not generate requisitions/PO's. Electronic component manufacturing capacity worldwide was already strained and we (HON/REZI) were not prime customers (think long payment terms to our suppliers).

This starved out production lines and caused internal "jumping through hoops" to source and then supply. Not optimal obviously. PwC identified that in their study (2017) and finally the purse strings got loosed in late 2018. Too late. Production lines that had been idled lost capable lines people and bringing on new ones made it hard to increase productivity.

Note: The fall out of the REZI reputation with customers and industry is not really going away anytime soon. I can't really speak about the products themselves though many here are very expert on their utility.

Organizationally, there was a lot of hope riding on Nefkins for REZI though he inherited legacy HON people that brought us to our current situation. FIngerpointing and "attacking" the weak/personable people is a leftover HON culture. So is making the "underlings" do the dirty work.

Many senior management personnel have such wealth due to HON/REZI. I overheard some of them comparing how "big" their war chests were, like number of classic cars in their possession and their third or fourth home at some vacation paradise.

The ones who were creating the roadshow really were optimistic in their projections (firsthand knowledge) and set up unrealistic expectations for REZI. This would make REZI more attractive. Please note that residence + presidio should be Residio (proper portmanteau) rather than Resideo which may more accurately describe RSI Video.

What we're seeing is the result of the "infrastructure" laid down (and by BCG) for REZI.

So much for the "Day Zero" and "Day One" rah-rah when we spun-off in Oct. 2018.

Excellent post from @5fmz+13mgYtzk.

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Post ID: @OP+13sADf5q

14 replies (most recent on top)

I find it amazing that someone would want to go back in a time machine (original post) when we are faced with the reality of the current situation. That is all defensive behavior - not someone trying to make things better or propose a solution. The biggest mistake was leadership thinking a company with 14K Plus employees was a "start up" - and thinking we were suddenly a "Software Company". That takes time and collective action - and will not be solved by hiring a team that has no background in the ecosystem of hardware and software. People who want connected home products do not want to play a game and get badges. The psychology is completely different - and somewhere along the way the leadership got enamored with "gamification" as the answer - when that was never going to work. Sad times -

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Post ID: @1roo+13sADf5q

We all go in circle. Straight to the point: no matter how we call who... it’s a collection mismanagement by senior and middle management (middle is director and managers) post mortem won’t change the situation. It never really stopped. Some heads changed but they also kept doing crazy mistakes.

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Post ID: @1ijx+13sADf5q

Clearly a combination of 2 groups of people. New leaders were brought in who knew nothing about the business (except CoB, but sounds like he wasn’t paying attention). The newbies put their trust in senior and middle management that were removed from leadership under HW and squirreled away in HW “special project” land, and who were brought back to lead the spun company. Unfortunately it was this group of management that drove the business into the ground under HW with their outdated ideas which in turn caused HW to divest itself of the business. Turns out Resi never had a chance with this set of leaders.

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Post ID: @1yyi+13sADf5q

@nys,
hit the nail right on the head.
The (past) corporate leadership and their cronies people below, did not understand the business post spin and the mechanism of the spin as it was starting. A total mismatch with the past CEO, compounded by the lack of management skills of the CIO, CMO, CTO.
Note that the CEO is the one that drafted those TSA and may not have realized their impact. (when I saw them before the spin, I was frankly shocked that CEO had agreed to all those and was laughing them off.... that's the moment I realized we were in real trouble)

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Post ID: @zvq+13sADf5q

Honeywell has optimized shareholder return during spin, this is a normal business strategy and execution. Resideo leadership thought it was a start-up... and this was not the case .. so there are stil TSA that limits Resideo autonomy 16 months after spin. Hopefully future leadership will better understand the business structure.

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Post ID: @nys+13sADf5q

Not sure how this helping people getting lay-off because of the mismanagement of ceo and board?
Is this a joke from that game mafia wars?
People are loosing their job and you guys go on a history channel episode bender?
Get a grip in Austin for F sake

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Post ID: @tly+13sADf5q

This does not seem to make sense. Is it historical diatribe about what happened 2 years ago? That layoffs will occur where??
Can the original poster please clarify what’s the goal here ?

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Post ID: @cdh+13sADf5q

This is >exactly< what Erik, Brian and Mike have been always saying for a long time to our teams , the Honeywell people are preventing rezi to thrive.
Finally this is out in the open!
People in RIFF should know it is not because of the current management @ Austin the lay-offs are occurring but because of Honeywell -

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Post ID: @fro+13sADf5q

So, are you saying there will be lots of layoffs in Supply Chain area? I'm confused... Please put more perspective on your post.

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Post ID: @vuy+13sADf5q

Agree the gist of the problem is Honeywell.
All Those people should retire or get fired.

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Post ID: @oht+13sADf5q

Why does the number of cars and houses the current people have in Austin matter????

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Post ID: @mpp+13sADf5q

Agree with Brian, Honeywell has always been the issue

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Post ID: @anv+13sADf5q

Yes completely agree it’s this the problem “ inherited legacy HON people that brought us to our current situation. ”
We should fire all Honeywell and only keep RSi and buoy!

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Post ID: @oes+13sADf5q

The way I read this post it's more top level and aludes to a foreshadowing of where we are today. REZI is trying it's best to "right" the organization and many employees are left to wonder.

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Post ID: @jfv+13sADf5q

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