Let’s look at Honeywell's second-quarter summary to see how the company is doing and where it is headed. Honeywell sales and earnings will likely be down for the rest of the year, Honeywell stated it is expecting to reduce 2020 costs by $1.4 billion to $1.6 billion – 60% to 70% of which is likely to be permanent layoffs and closures. During its second quarter, Honeywell reduced costs by $500 million. Therefore as of August they will have completed approximately 30% of the necessary layoffs to met the $1.4-1.6 billion in cost reductions. If appears the 50% reduction in white collar and non production employee over the next year is on schedule asked on the second quarter statements to achieve the targeted cost reductions to right size the organization for the future. Cost reductions of this magnitude therefore will not go unnoticed so expect to see more and even greater layoffs between now and the end of the year.
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Just Checked the job board and to no surprise, HW has 491 open Engineering positions in India, as compared to 10 open poitions in the USA. I wonder how the other business function positions compare to the HW listings in other low cost, third country national HW job post?
Think of all the former corporate giants that also achieved that state of nirvana - reduced to a licensed "famous name" on doorcrasher specials - all under the leadership of the fifth column of bupkes gurus once adulated by Wall Street.
No chance of SW on defense side to ever leave the states. Too much risk and not an option on defense contracts.
Just because you work at the company does not mean you know everything from every group.. smh
Most software-only companies end up offshoring the lion's share of the work to software sweatshops in places like India, and heavily utilize H1-B within the U.S.
If Honeywell is able to be transformed from and industrial company to a industrial software company over the next few years, while maintaining approximately $40 billion in revenue the employment size of the company would be approximate 35-45 thousand employees globally or less than half of it current global work force. With that being said, approximately 40% of this work force numbers would be in North America and Europe and 60% in low cost developing nations. A $25-30 billion in revenue software company would employee approximately 20-30 thousand employees. Honeywell currently employees approximately 95-100 thousand employees. Key functions would be software engineers, software technical support, software sales, software marketing, administration and corporate functions. Expect most legacy employees to be replaced by software industry employees and recent software industry graduates with extensive software industry knowledge base.
Thanks...appreciate the info and analysis.
Based on second quarter numbers and the expectation for the rest of 2020 revenue to be down. I would expect to see an additional $600-$700 million in 2021 of cost saving layoffs or about 25%-30% of additional layoffs in 2021 too.
That's from the Motley Fool:
https://www.fool.com/amp/investing/2020/07/30/is-honeywell-stock-a-buy.aspx
The only thing that I'd note is that out of the $1.4-1.7B in savings, Fool states that 60-70% is permanent. Would it be safe to assume that's related to layoffs?
That means that we're looking at overall layoffs in 2020 ranging from $800M to $1.1M.
If so, considering the already accrued "savings" of $500M in Q2, I don't think we are only 30% of the way... I think its more like 45-60%?
From the article, this is quite terrifying. Basically anywhere from $300M to $600M left of layoffs for the rest of 2020??