I can understand the need for a company to resize in order to stay competitive, but reductions to this extent can’t achieve anything good. They are basically letting go the element (the employees) that made this company great and that can never be good. Also, have any of these leaders performed such a big reduction in practice, or are they basing the future of the company on something that only look good in an excel sheet?
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The answer, of course, is "No!" The people at the top either don't know what it takes to make everything happen correctly and how to deal with the inevitable problems, and don't want to know, or else know and either don't care or don't have the power to stop the idiocy. In the end it is all about the cost numbers they can control (since they can't control the revenue (Sales) numbers) so the cash flow and profit margins come out each quarter.
That said, the wheels are not likely to come off soon, but it will happen. I only hope that there will be a gradual deterioration and not a calamity due to lack of skilled people. And this includes everyone, not just Engineering.
What leaders? This company doesn't have leaders, just a bunch of con artists looking to build their golden parachute. Those people don't give a sh-- about anything except their fortunes.
This ABSOUTELY can not be sustained. I see it in engineering, test labs, and manufacturing. The older and experienced employees are leaving or retiring without sufficient knowledge transfer to new and younger employees. Outsourcing manufacturing processed and parts has only brought more and tougher problems to solve with inexperienced and under exposed employees. This is happening over and over in all the areas I deal with. The only thing that amazes me is that the whole process has not crashed.
Of course they have no idea the magnitude of the damage they're creating. In their pompous arrogance, however, they think they do. The only question to ask yourself is when would be a good time in this process to start shorting Honeywell stock.
William Douglas said it best: "Go East Young Man".
It's about cost cutting; getting rid of expensive, older employees and replacing with young, cheaper ones, particularly in low cost regions. Then Corporate and SBG leaders get their big bonuses for meeting Wall Street expectations. If those leaders don't make their objectives, they get fired. "When you play the game of thrones, you win or you die. There is no middle ground."
Make this quarter look nice so the greedy b@stards running this operation get their King's ransom bonuses. Long term success? What do they care -- they get rich quick and move on.
They don't know. Management != Leadership. Aerospace has an excess of management, but very little leadership. I'm astounded at the qty of Directors and above. It is not sustainable.