For layoff information you really only need to look at restructuring data from Emerson's annual report. Here it is verbatim "Actions taken in 2021 included workforce reductions of approximately 3,600 positions and the exit of eight production facilities worldwide." and "Expenses incurred in 2020 and 2019 included actions to exit six and two facilities, and eliminate approximately 5,400 and 1,100 positions, respectively." These were based off of "restructuring" expenses of $95M, $284M and $150M in 2019, 2020 and 2021 respectively. They also state "The Company expects fiscal year 2022 restructuring expense to be approximately $150M." That would be on par with 2021, which resulted in 3,600 positions being cut. 2019 - 2021 equaled over 10K layoffs, with another 3K plus coming in 2022. However, with the Aspen acquisition still pending I expect this number to be revised post acquisition once they work on "synergies" which is just another word for "restructuring" which is just another word for layoffs.
4 replies (most recent on top)
Stock price is doing great though! As is executive compensation.
What do you believe ? Is it the end of the two division or will they take the company's to a cheaper labor market such as Mexico or China? After all I believe they have cut about all they can cut as far as the fat goes. Labor, Gas, Electric, Helium, Wire, Steel, Copper etc, so where is fat going to be cut next with nothing left to cut? They have to make a profit right? How?
This is why I jump ship.
I just took a look at their 2018 annual report. Their restructuring expenses for 2016, 2017 and 2018 were $96M, $78M and $65M respectively. Those resulted in 1,900, 1,200 and 1,200 positions respectively. So 2016-2018 resulted in 3,300 layoffs total. 2019-2021 resulted in 10,100 layoffs total, over 3x the rate of the previous three years. Revenue increased from $14.5B in 2016 to $17.4B in 2018. Revenue has been flat since. SG&A peaked in 2018 at 24.5% and is now at 22.9%. Activist investors targeted SG&A and Emerson has responded. Simple as that, but at the consequence of growth it seems. The cuts seemed to have saved Emerson ~$300M per year, but at what cost? I think it is a fair question to ask Emerson leadership and would appreciate any insight.....