What is the outlook for the new year?
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In case you haven’t noticed , senior execs have left in droves since Blake started. Marty Thomas started it. Almost all left before they would normally have done. You can say some needed to go but not all. And 100s of years of institutional knowledge and leadership left. Only to be filled by the current sad sack of sr vp’s.
Many senior executives will likely be asked to leave (or just leave on their own for personal reasons) this FY. The RA stock price dropped by over 10% YOY.
Time to fire Blake. Stock performance over his tenure has been underwhelming.
The beatings will continue until morale improves.
I would NOT miss Buttermore. His idea of leadership is to tell people to be positive while the village is burning rather than trying to put the fire out. I could give him the benefit of the doubt and assume he wants to put the fire out but does not know how, but that would only confirm the idea he does not know what he is doing.
My prediction. Blake leans over, turns red and fires either Buttermore or Scotty G next.
I think if we are objective, it’s not great. Blake will blame distributor overstocking as a reason for slower core sales. The street is going to call bs. As they should. Comps with other industrial automation companies shows that ra is just not executing. Blame Blake and his second rate leadership team. He let all the leaders who knew the business walk out the door. And he continues to do so. Scotty g is a dolt. Bobby Buttermore is not a supply chain guy. Tessa is not a strong GM. Matt is meh. Becky is incompetent. Look at the results and prove me wrong. Sales. Tessa and Bob are sales wonks. Scotty g is just a job jumping sw sales wonk. Customers and distributors know Rockwell as an industrial automation company. They are good at it. But Blake detests the past and fell for analyst and consultants like McKinsey telling him “your past success won’t help you in the future”. That’s consultants bs to get you to spend more money with them. If he Blake was a smart leader he would have realized this. Now it is too late. The future looks mediocre at best. Stock price 7 years after Emerson offer shows minimal growth. Activist shareholders are watching.
Many remote positions that require customer interfacing (such as sales, application consultants, and field service staff) are likely to remain. However, on-site roles could continue to be outsourced to more cost-effective locations, a trend that has been ongoing for some time.
The company is attempting to do more with less, and outsourcing is a key part of this strategy. For W2 employees, outsourcing can be even more harmful than layoff itself, as the jobs are permanently eliminated. The sad part is there's nothing we can do about it.
Cuts will continue in FY25. No significant merits increases.
NA employees are simply too expensive compared to employees from other parts of the world, say India. I predict that all remote NA roles will be moved to India.
Not to get biblical, but for those who survived the thunderstorm of hail and fire, lookout for the locusts that are coming next.