Honeywell was a great place to work for the longest time, then it changed. 34 years for me. Why did leadership decide negative feedback worked better than raises, promotions, and an occasional pat on the back. Did it start with Darius? Or were the seeds planted with Cote? It seemed to come on gradually. Perhaps my boss was trying to soft pedal it until he realized he had no choice but to get mean. I suspect that one-on-ones were being listed to by HR to assure managers followed the script.
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@3zop- good points. But go forward those rev sources still gone so Hon smaller company with less rev. What will Hon do with cash is question. Buy other business that will grow bigger than what was sold? New product? (We all know reality of this) Stock buy backs? Div increase? WS wants to know. Does Hon have a good plan? If not they will move on. All I hear about is Quantum Computing.
@3bfn: The majority of the drop in revenue from 9/2018 of $42.9B can be explained by the two 2018 Q4 spinoffs of Garrett (GTX) 2017 revenue $3.1B & Resideo (REZI) 2017 revenue $5.0B. These two actions would account for a drop in revenue from $42.9B to $34.8B. This drop was expected by Wall Street and is simply standard accounting principles in reporting of revenue.
I'm not defending Honeyhell but the revenue numbers are not as dire as your post makes them out to be.
Hon 12 month trailing revenues peaked at $42.9B for quarter ended 9/2018. It has been downhill since then, $33.9B qtr. ended 6/30/2021. We are not growing, we are shrinking. It will be harder and harder to please WS. One day the big boys will start selling and move their game on to other companies.
As I recall the company started reducing and eliminating benefits in the 2007/2008 time frame. Seems like in the 4th quarter the company would announce the changes starting typically in the new year. Cote used the excuse that the "great recession" was responsible for needing to reduce/eliminate benefits but hey layoffs could be avoided by these reductions, BS pure and simple. i remember in about 2012 or 2013 they started hiring many non qualified sub contracts with the goal being 30% of the workforce were possible. I couldn't stand working there any longer and retired in 2014.
The company is a master at manipulation. Yeah stock price looks good, but this is NOT a healthy company and it will catch up. You can not sustain this with unhappy employees and unhappy customers. The only people with smiles on their faces are the execs with all the cash in their greedy little pockets. The strategy is to consolidate and send as much commercial work South of the border because the China strategy was poorly thought out without consideration for inflation rates. So now, the only way out is to cut jobs, close plants, sell pieces off because the experienced workers with all the process knowledge are gone and nothing is documented. Customers and employees have been more and more dissatisfied since Maddog took over and decided to forget about past dues and OTTR and PER, but hey stock price is good. The future is what you make it HW.......it will all catch up and then what? Retirement of fat, d-mb and happy leaders like MM and DA.
Why do they bother with US sites anyway? Time to put the puppets in the box and let India build good product or sink. I vote to completely close all the sites in Phoenix. Layoff the execs unless they will relocate to India and take commensurate pay cuts.
Let the defense work continue if it makes money but cut the umbillical cord on HTS. 25 years is enough for childhood.
Honeywell (pre-merger 1999) and Allied Signal were both nice places to work. When outsiders come in to take over things go down hill. Leaders from outside don't have any passion for the products - just the financials. That's when the cost cutting starts. Yeah Bossidy was a financial guy, but he really didn't take very aggressive action. Cote was CEO from 2002-2018. He started slow and the stock was a laggard. His goal - get the stock going. After the financial crisis in 2008-09 he got very aggressive. That's when I noticed the big changes every body talks about and doesn't like. Rapidly moving everything to low cost regions, no more training, no "celebrations", purge your lowest 10%, everything becomes employees responsibility - manager involvement / help goes away. We all work more or less on our own and are nothing but a block on a excel spreadsheet.
As ex UOP I can tell you it's been going downhill since 2008. Field Operating Services was a big money maker there. Then they started cutting on benefits and hiring less exprieneced personnel. Even customers are asking for the CVs of FOS advisors before taking them in to site. That was unheard of in previous years.
The last nail in the coffin was the complete demise of FOS. Complete mo--ns if you ask me. But I'm sure Cote, Darius and the like must be getting big fat bonuses while the brain drain happens.
It was Cote. He went full ballistic after the 2008 financial crisis when he realized the stock price hadn't gone anywhere since he took over in 2002.
AiResearch and Honeywell red were both great places to work, respected in the marketplace, run and staffed by lots of people who had been there decades. AiResearch started the slide downhill when Allied Chemical got involved, and it accelerated when Bossidy & Co. took over. As everyone has pointed out, Honeywell took it in the shorts when AlliedSignal bought them, and the whole shebang went into a real dive when MM took over ISC.
Sad
The public will eventually figure out that the Honeywell brand is a deceitful shill for low cost junk decided and manufactured in far away places. Wherever is cheapest. Posting some pictures of Honeywell branded surveillance equipment being ripped off the walls of US military and government buildings everywhere might move the process along.
Meanwhile the aerospace guys tell me quality is so bad they run screen savers on the desktops reminding everyone that airbus isn’t going to let Honeywell bid anymore. ( is that true?). No special treatment there. Doesn’t matter if you make electric fans or guidance systems. Same story everywhere. Too few people, no investment in keeping people trained, Zero inventory, outsource..outsource…outsource.
All big corporations will go thru' the phase of 'Too-Big-To-Fail' syndrome where regardless of what policies and direction a corporation takes, it will still plough on to generate favorable returns to shareholders. And, in all honesty, thats what shareholders only care about.
All this whining and gripe will do absolutely nothing to Honeywell as the big wheels of corporate America continue to turn. Unless, there is a nation revolution to how investments are made and unions are formed, all this nonsense talk only creates a misconception on what worker rights can do.
In the meantime, MM will still continue to helm till this quarter's result are reported and demonstrate the 3 corp metrices not met yet again, will we all know if AERO will still be the top favourite of Honeywell
Aero started to tumble with Maddog. He came in and made a mess and continues to even managed to take the big job. His style and the fact that he continues to promote young inexperienced leaders that will agree with him on everything and not challenge anything has caused the fall. Before him, there were at least a few good leaders with some guts to lead, but not anymore.
Feel your pain over here at UOP. Let's us do our jobs instead all political cr-p.
Probably when original Honeywell was bought out and merged with Allied, both places were better before this happened
Dave Cote instituted the cruel nine block / decimation abomination. That happened before the merger.
It started with Allied and COTE but at different speeds in different areas
PMT wasn’t targeted until about 10 years ago. Then it was ACS and the breakup of ACS as the COTE replacement battle took place which Darius won. Now the Honeyhell torture is everywhere. Those close to retirement stay because switching isn’t worth it. Younger folks get some experience and take off at the first opportunity. Honeyhell will be the next GE, I just do not know when. Probably within the decade though
Most will ultimately be removed as the enterprise is offshored.
merger with Allied Signal was the opening bell. Down hill since. Way DOWN HILL!