Once known as the leaders of cutting-edge surveillance cameras, a Valley company has fallen behind the technological curve.
Pelco employees learned at a company meeting last week that 200 workers will be laid off by December. At one point, the workforce for the Clovis-based company stood at 2,000 strong.
According to a memo distributed to employees during the meeting and obtained by GV Wire, the company said “Due to an uncertain business climate and declining demand for analog video, Schneider Electric will exit video manufacturing in Clovis. Production will transfer to a contracted manufacturers or third party offers where product will continue to be labelled/branded as SE Pelco. Also BMS will consolidate under one roof on the Clovis Campus.”
The layoffs come from Pelco’s manufacturing operations as the company intends to shut down the production of its video line.
“The primary reason is technology has shifted from analog to IP and the Clovis operations is not in a position to keep up with the rapidly shifting technology base,” said Pelco Vice President of Operations, Joe Kochan.
“The accelerated implementation of new products has also forced us to work with global partners throughout the world – those global partners are in Asia, the Middle East, Europe as well as in the US and specifically many in California. These partnerships across the globe allow us to leverage new technology and larger pool of resources to help Pelco keep up with the rapidly changing market,” Kochan said.
According to its company website, Pelco was founded in 1957 in Hawthorne, CA. It was bought by France-based Schneider Electric in 2008.
Schneider Electric says it will provide those affected with a “generous” severance package as well as outplacement services. GV Wire reached out to employees at the company who were unable to share their comments for fear of losing their compensation.
Kochan said, “Schneider Electric is a very responsible company and is treating the affected people with respect and appreciation for what they have done for the business.”
Current and former employees have expressed their frustration and disappointment on social media. Some share job postings from other companies. One poster wrote “I remember them saying ‘Nothing’s going to change; you won’t even know we’re here.’ It’s a sad to see a once great company run into the ground.”
Although the company’s workforce is shrinking Kochan said, “We have a tremendous team both at Pelco as well as with our global partners that are very focused on continuing the success of Pelco.”
Veronique Werz contributed to this report.
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