Due to the coronavirus, Honeywell will start to lay-off employees to adjust to the soft market. After several cost reductions including cancel merit increase, 2-week furlough, and reduction in senior management pay, it was not enough to make the NUMBERS.
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It would be nice if that was true about more than enough volunteers, but highly doubt it since the instructions were so vague and nothing in writing....
Hearing whispers that several functions in Aero have more RIF volunteers than the ALT needed to hit their numbers. Seems to have shocked them yet it just proves how out of touch they are.
My guess is continued furloughs, continued RIFs, 401k match going away or being heavily reduced, salary reductions and hiring freeze will continue through 2020 into 2021.
@2kt you said it perfectly! You can’t trust any of them, they walk right up to the line of criminality and immorality if it saves the stock price. Everything about the self nomination “announcement” was shady.
@1gro There probably won't be any WARN notices for most of the RIFs. For the past 5 years HoneyHell has been RIFing employees in small groups so that the WARN criteria isn't met. Many people on this site have commented that the phone call and no email seems sneaky. It is. By not giving any commitments to employees about an end date other than a vague up to the end of Q3, they can RIF a few employees at a time and remain under WARN notification limits. They do this because 1) they don't trust employees, 2) they don't want bad publicity and 3) it's harder to attract the younger, less expensive employees if there is no "future" for the "future shapers."
A declining stock price increases the likelihood of more RIF action. Cut heads to try to save stock. Big red stick down today, below 130. Everyone should know it's all about the stock price.
and Anniston, like Greer R&O, closes its doors. Guess Phoenix will have to make up their work too?? but wait...they still cant build engines, so they are making masks to keep America safe....hhhhmmmmm....
My guess is WARN notices will go out end of may/early June. Sixty days will be employee’s last day, pushing impact into Q3 as announced.
Was told during our RIF meeting, that the timeframe for voluntary and involuntary is within the next few weeks.
They did say during the call that it this only applies to the continental U.S. and Canada. I guess other countries or territories have different laws they need to follow. This shouldn't come as a surprise and almost every company is doing it. This is not ideal, but you can't sit back and watch other companies doing it and saying that we are immune to RIFs. I am hoping for the best along with all my coworkers.
Did not hear about this meeting. Was it strictly Aero, or some smaller group that was announcing voluntary layoffs? Looking forward to HCE voluntary requests...
Agree @1gw.
Involuntary rif announcements are coming soon. They wanted to give the appearance of offering a voluntary layoff by giving employees no details and two days notice so that when they announce the real layoffs they can say they offered voluntary first. It’s all for talking points. Rest assured Honeywell has the number of layoffs already in mind
I would be surprised if there isn't s "real" RIF announced in the near future. Has to be to get the numbers. I don't see too many folks jumping at this vague request for nominees. Why self nominate with a lot of unknowns. Wouldn't you rather see in writing the effective dates if you volunteer and a statement regarding severance? I talked to my HR rep (a lot of years at Hon, not a young contract worker), who was not present at the meeting, about the meeting yesterday and was told she had very little knowledge of what went down and I should discuss with my boss.
Any word on the moribund Cambridge Ontario operation (the former Com Dev)?
All of our contractors were let go. It's a sad situation. Many of them were great talented people and it takes a long time to train them. Granted our workload is down so I get it.
Do you have any idea how about the out of U.S.? India, Europe employees...?
We were told today that contractors will be let go, in addition to the layoffs that are coming.
Anybody have any idea if contractors are the first to go when something like this happens?
Easy to find. 140M or so in q4 of 2015. That included a number of other charges including asbestos litigation. About 1000 employees were released that quarter.
So doubling that would put an estimate at 2000 employees. I think it is higher though. They are probably targeting fifteen percent just to line up with the fifteen percent drop in business they reported.
What was the restructuring charges reported for the last RIF? That should give a good idea of the magnitude here.
`Example of Restructuring Charge
Due to poor industry forecasts, Company A has decided to downsize its operations. To do so, it lays off several employees who each receive severance checks as compensation. The severance cost associated with such a structural change in the business is a restructuring charge`
I think the $275M DA mentioned in the earnings call should have been called a restructuring charge. That would be the severence checks. With average salary of 69k and average severance of 50 percent pay that would be something in the neighborhood of 8000 people. So estimate 6000 total after overhead and other charges. That is a big layoff.
On the other hand ...no warn notices. The law requires 60 day notice above certain counts.. and that 6000 is way over those counts
HR isnt overwhelmed. No chance they get enough volunteers to hit the targets needed. Remember that ceo told us how many billions he was going to cut in the townhall. Do the math.
I left Honeywell (Greer) three years ago and it's the best thing I ever done. Too much backstabbing and looking for reasons to terminate/layoff people. The poor performers were not held accountable and upper management were just tools.
What does it say that I emailed HR for the nomination paperwork during the meeting this morning and still haven’t heard back? Is HR overwhelmed or just as useless as everyone thought? It’s going to be hard to self nominate by Wednesday at noon when it takes a minimum of 3 days to get a response from HR.
Only US and CAN affected
Corp IT is hiring...
Is PR and Mex involved in RIF?
Will not nominating mean that we lose the severance package if we are asked to leave later?
Of course they were vague!! That way the door is left open to reduce more people! Talk is cheap! Low moral and agree, they will have the people be grateful they still have a job!
A lot of companies will bounce back, but believe aerospace will struggle for couple years due to projections the airlines are predicting and flying will be expensive for some time after this.
Good luck everyone! Stay safe!
Raytheon in Largo is hiring,
Everyone needs to keep in mind that the "leaders" had no intention of suspending the stock dividend payout while they furlough the entire company and now announce RIFs. Keep that in mind when they lie and say they did everything they could because it's just that; a boldface lie.
All the people who don't get let go will have to pickup all the work of those who were let go AND with no raises and no incentives. ALT just working us all to death but they'll tell you the old "be happy you're employed" joke to keep you in line.
Get out! It’s only going to get worse. Next week they will lay you off WITHOUT a package and you will be screwed.
I agree with 90% of complaints about Honeywell on this page, but this time it is different. The china virus is doing major damage across the worlds economy. There is no light switch put return to normal anytime soon. I do think we need to get the country opened up as soon as possible and learn to locate and manage hot spots. We cannot hide forever. I have 40 years at Honeywell so I have seen alot, hopefully Honeywell will give us old volunteers first ticket out and leave the younger worker to slave away.
Monday Honeywell asked for volunteers for the RIF. The announced process was to request paper work from HR via email, filled out and to have it reviewed by HR by Wednesday Noon. At best this is one day to actually decide. Details of what is in the severance package and the details of the process was not given (Health care coverage, when the checks would show up, what information is needed for the forms, when the layoff would start (next day, end of month, end of June) etc.) The only process that is known is the unannounced detail that holding the RIF now insures no one involved (voluntary or not) will get a 401K match in December (i.e. more savings for HON.)
Honeywell is still struggling from the loss of key people from last years closures and from the loss of key people leaving for a better job. Soon, all that will be left is links to process documents. Process alone will not generate saleable goods.
Vote UP to run, not walk. Vote down to stay.
Does anyone know what the difference in time from when you volunteer to your last day of work? Is it a two week gap or immediate?
It's not a soft market. There's been a complete collapse in commercial aerospace not to mention oil as well. It will be a miracle if Hon even stays in business.
I am volunteering for RIF, I want to have life again. Honeywell is a complete Sh*thole. I hope I get accepted soon.
Since stock price is paramount here at HON, we will continue reductions in Force to maintain the illusion of profitability. We understand this is a tough time for our most valuable asset, our employees, but we are thankful we have so many dedicated employees who will pick up all the slack created by the laid off employees despite no raises, no incentives, and likely pay cuts and allow us to continue the money making machine!