Just saw the announcement in my inbox. GK is out as SPS president and SPS is enveloping SETS and HPS. SPS will be rebranded as Industrial Automation (IA). Get ready for your positions to be considered redundant, especially if you're in R&D stateside. I
'm still waiting for IGS to be offloaded. I'm hoping beyond hope that happens soon for the sake of Intelligrated's existence.
This has been the topic of conversation in our team since August, ALL the signs are there and it is a mixture here of those dreading it and those who can not wait! We all thought it would be this month but latest gossip is that the big reshuffle begins next year and that only small batches of layoffs will happen before the new year. Who knows hey, but the vibe here is very bad, lots of people scared they will be dropped before the holidays which is the typical Honeywell way.
Have they begun the SPS/IA cull yet or is that being held off until Q1?
I poked a guess that they would do it in November to save on the 401k payouts but I also imagine it will take them until early next year to sort out the administration, efficiency is certainly not a core competency of Honeywell!!
So glad I moved on, the horror stories I hear from exec's still in the game are incredible!
What happens to SPS leadership and folks at the NC HQ? They just expected to move to Houston LOL?
I know people despise JW and fairly so, but whoever held that position was destined for the same result.
The problem is the board, always has been.
A few of us already called out on here that GK would not last, it is all so incredibly predictable.
VK will be another disaster, the new IA group will be savaged next year, of that I can assure you.
Where I'd John Waldren (aka Doogie howser) in this?
PPE has been losing market share for years. If they would have combined Salisbury, PPE and Portables years ago their cost structure wouldn’t be as jacked up. I am not talked about just putting them in the same division, actually being able to have 1 sales rep, 1PO, 1 partner program etc. probably would not have mattered with HW running things but I believe there would have been less dysfunction.
MG seems like a nice guy as the new Pres, but he is over his skis like the last 15 presidents they have had, just doesn’t know anything about PPE. The sales leadership team is clueless, DC was promoted but still doesn’t know what is going on. They moved everything to Mexico but don’t have room in the factory, I bet they still have conex boxes outside the facility with items from Franklin in it. Where was JC saying this isn’t a good idea, but either toe the line or you’re out so I can’t so much blame him.
Best option would be a spin off as I don’t think anyone will buy them, maybe get lucky with private equity
They have taken the best of PPE and the employees who worked there and have bundled it up under Medical. Fixed Hgas will move in to HPS and the portable gas will be bundled up with what’s left of PPE and sold off. A completely different business from the days of Dave, not fun working here right now.
This is just the precursor, so much has not been disclosed yet.
You should have noticed or will notice unusual goings on.
A lot was disclosed on here in January and is coming to fruition.
Couldn’t agree more with both your comments regarding HGAS and their ever growing competition, but I as much as I try to work out what their (HW) end game is, nothing I end up with makes any sense!
And its not just HGAS, what about the other “safety” sectors (fall, boots, gloves etc)
I would guess Voice is good. Last I checked they were one of most profitable at HW. I believe their R&D is a bit segregated out from corp R&D. And voice solutions fit the warehouse automation bill.
Can confirm they trashed HGas portables. All the good people were pushed out or ran off, just trash left with the exception of 1 or 2 of the old team who are stuck by circumstance.
Write off in my opinion.
@zkj+1p1TMVWC
HW have been pretty disastrous for the gas business. Through bad decision making (aka total incompetence) they have managed to run gas almost into the ground whilst at the same time spawning competitor’s through loosing their most talented staff. Blackline, Sensorex, DD Scientific, groups in Shanghai after the relocation of RAE sensors to Nanjing, And I’ve lost count how many ex HW employees now work at WatchGas. Once there used to be many knowledgeable and experienced employees within the group, now SST is like a rudderless ship and in some cases the “Mary Celeste”.
Here is how it plays out for IA over the next 12 months. An initial round of RIF before the holidays, leadership restructure in Q1. Significant movement of US positions to Asia and Mexico, and more RIF in NA and Europe. Reduction in Portfolio Q2 onwards (looking at you PPE), parts of HGAS may or may not be sold (Portables on last legs, fixed still has some market), PSS?? A big effort to revive Intelligrated (which will of course fail) and the sensors business will get a lot of attention.
Ha - they still have GK up as the sps president and ceo on Honeywell s website. Either a rush decision or someone dropped the ball.
@pcz+1p1TMVWC I debated whether to comment, but you are exactly correct. There are some legacy portfolios whose IP gets increasingly worthless every year and the market valuations were just plain ridiculous. Take a hint if you are in those groups ;)
The announcement was a whole load of nothing, GK's departure was the only good that came out of it. All the other failures are still there and some like KW have been promoted. Morris Plains taking over Chicago was a surprise, but there is not much left in either place. All SPS businesses are still stuck in HON. Its getting clear no one wants to buy SST, PSS, PPE (or whatever its called now)
Very interesting, it was suggested to me recently that some SPS businesses did not sit with the new business direction and were going to be shown the door or divestment.
May still be the case, next phase?
@fls+1p1TMVWC According to pg16 of the strategy update IA is the same structure as SPS with the addition of HPS. Shame as a reduced portfolio is what is really needed, more smoke and mirrors for Wall Street I am afraid. Same old, same old.... rebranded hype to usher in VK's reign.
I gotta ask, what is going to happen to scanning (PSS)?
SV has been catastrophic to SPS too but he will be kept.
If you think this reorg will lead to improvement lets remember the Honeywell mantra:
"It will get worse before it gets worse"
Wondering where / how the safety section of SST (PPE, HGAS etc) fits into an SBU titled "Industrial Automation"?
I wonder how that impact The Honeywell Voice business. They’ve been moved back to SPS.
Unfortunately it looks like IGS is a core part of the automation megatrend. We're going nowhere... bend over and lube up.
I don´t think IGS is going away, PPE and PSS are out, read the presentation ( https://honeywell.gcs-web.com/static-files/83024d0d-a520-46bb-a255-d583b3f96ae7 ) "Divest ~10% of revenue not aligned to new structure"
I guess it will be know soon that some current Honeywell SPS businesses will not be here next year as they formalize the transition to IA and the simplification strategy.
Again, the value of this site is proven!! There have been a few posts in recent months warning this was about to happen well in advance, just as we were well informed of DA's deposition. It is gonna get real bumpy, time to bail!!
I hope the Honeyhell damage to Intelligrated does not destroy the company. HW treated Intelligrated as a widget company not understanding business cycles or the legacy talent required to implement projects. Apparently our competition has since they keep hiring the talent. AI will not help you go to the field to implement changes or answer the call VPNing into a site to figure out what has failed. This is where knowledge and talent is required.
"For SPS, I plan to spend more time with the business, providing guidance to leadership. "
Thats corpo speak for "you su-k". That's got to sting. Maybe VK's alright...
GK is a cancer - it’s good to see him unceremoniously deposited into the waste bin. Although he inherited JW’s mess, his condescending tone and authoritarian “leadership” style didn’t do him any favors.
I too hope IGS is able to escape the Honeywell tentacles. Should be an HBR case study on how short-term decision making turns a wildly successful business into a money-losing shell of its former glory.