Help me understand the logic in furloughing 100% billable operations staff? Our salaries are more than paid for by these contracts and the hours remaining aren't going anywhere. The customers are figuring it out and looking to poach more Honeywell engineers. There will be a brain drain and further loss of money.
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That would be awful if they furloughed people on a government contract that HON promised butts in seats on. JON would never do something like that in Aerospace to their most valuable customer. It might even be illegal. HON would never break a law and self report if it made a mistake. That’s what my training told me.
SPS is bu-----d. All that furloughing will not bring about a better Q3 number. Further actions for reducing cost will come after Q3 closing so that Q4 will not drag the stocks down any further.
Blame? Ain’t Johnny Boy’s fault. Its just good ole’ American Capitalism at work that treats everything as a commodity that can be sold.
Remember the billable engineers do not get paid between 40-48 hours but the project is charged for this effort artificially burdening the project and project manager's bonus. That effort goes straight to the bottom line.
In our group in SPS, those that charge direct to customer projects are not furloughed. All of our support types are, and there is a whole bunch of stuff we can't do while these folks are furloughed. That doesn't change our end deliverables though. Nor can we mention it to our customers. This company is just trying to hang on and is not working towards a brighter future. Something is coming. Maybe aliens taking over the world? :) Or management hopes so.