Crestron Rightsizes

EdisonReport has learned of recent layoffs at Crestron. A current employee confirmed a rightsizing operation over the past few months, attributing it to challenging market conditions. Signify’s recent report of a 9.8% sales decline underscores these industry difficulties.

A former employee told your humble editor that delayed expense reimbursements were an early indicator of financial strain. Post-COVID, Crestron had increased investments in inventory and staffing and is now adjusting to current market demands.

Inventory Challenges

During the pandemic, Crestron faced significant shipping delays, with lead times extending up to six months, creating reduced demand. Efforts to address these issues have been successful, perhaps too successful. Presently, most orders ship within the same month. Inventory levels have now reached the highest level in decades, tying up substantial capital. However, new product introductions continued to face delays, causing reps to have to encourage designers to change specifications.

Strategic Shifts

Contrary to speculation, the AV division is not “taking over” sales but will be more prominent in driving the architectural business. The AV sector remains a crucial revenue stream, with Crestron aiming to rebuild by leveraging its strengths.

The employee assured me that the current phase of rightsizing is complete, and there are no immediate plans for further layoffs. However, he cautioned that future market downturns could necessitate additional measures.

About Crestron 

Founded in 1972, Crestron specializes in intelligent video conferencing, digital content distribution, smart home systems, and advanced control technologies. Its solutions are widely used in corporate boardrooms, educational institutions, luxury homes, and government facilities. Through its True Blue team, Crestron is committed to innovation and superior customer support.

For more information, visit the Crestron company overview.