This email reflects the update sent to all managers recently - it has now been translated for all employees.
Dear Colleagues,
I want to give you an update on the GWS divestiture plans announced on September 30. Though we are still very early in the process, we do have some news to share.
Immediately following the announcement, our leaders reached out directly to our top customers to inform them of plans to divest the GWS business. I’m pleased to say that their reaction was largely positive. Though they had many questions, the majority of our customers see this as a positive move for our business. We assured them we will continue to meet our contractual obligations to them, providing the high quality service they are accustomed to receiving from us, and that we will keep them informed every step of the way.
In preparation for the divestiture, we have begun work on separating the GWS business from Johnson Controls. This entails identifying entanglements (areas where GWS is dependent on Johnson Controls for various processes, systems and platforms) and developing work plans for how to move forward once a buyer is identified and the transaction closed. Some of our employees are being asked to help with this initiative, however, our goal is to keep the majority of our global team focused on running the business.
I want to thank those of you who have submitted questions to the “Informing GWS” Community Site. We have received many thoughtful questions that we are responding to as quickly as possible. Responses are posted on the site for the benefit of all employees.
The most frequently asked questions are on the topic of employee benefits. We have addressed many of these questions on the SharePoint site. In addition, we will be scheduling online meetings in each region to provide more information and allow employees the opportunity to direct questions to our HR team. Watch for calendar invites for these upcoming sessions.
You may have seen recent media coverage of the planned divestiture in trade and financial publications. We’ve had a number of questions from employees about two rather unflattering articles that appeared in the Wall Street Journal and Forbes. The stories drew conclusions about our financial health from numbers published in Johnson Controls’ quarterly earnings reports. While the numbers are accurate, when not presented in the proper context they can be misleading and not reflective of our actual performance. I can assure you that our business is strong.
Another frequently asked question is whether potential buyers have been identified. I am pleased to tell you that due to the overall strength and strategic attractiveness of our business, we are seeing significant interest from the marketplace. The process of identifying buyers is in the very early stage, so we are not able to provide additional information at this time. Corporate has retained Bank of America Merrill Lynch as exclusive financial advisor to assist in the initiative. To maintain the integrity of the selection process, public details will be limited until a buyer is chosen. We are committed to working through this process as quickly as possible to minimize speculation and distractions to the business.
In the coming weeks, I will continue to share information as it becomes available. In the meantime, I encourage you to engage in open dialogue with your manager about any questions or concerns you have. Be sure to visit the “Informing GWS” Community Site frequently to stay updated on the process as it unfolds. There you will find video messages, FAQ documents, presentations, and other timely materials to keep you informed.
For now, I ask that you please keep doing what you are doing and stay focused as we continue to move our business forward by executing on our strategies and delivering on our commitments to our customers. Because of your hard work, we’ve had an incredible year. Thank you for your continued support of the GWS business.