Some years ago, Hexagon went on an acquisition spree forming an organization composed of many disparate parts. I’ve attended a couple user conferences often trying to figure out where everything is.
Last year they announced a restructuring that spins off a chunk of the company. Here is the story from a message I received.
We step forward with a new identity and a powerful story to share.
As Hexagon AB prepares for the potential spin-off of its Asset Lifecycle Intelligence and Safety, Infrastructure & Geospatial divisions, as well as ETQ, Bricsys and Projectmates, we are ready to introduce our new brand.
Octave was built to unleash intelligence at scale, harnessing data to transform what’s possible for customers around the world.
This is more than a new name. It’s a bold signal of who we are, and how our solutions and team can champion your business.
Expertise. Clarity. Intelligence. All tuned to cut through complexity and optimize performance – at any scope or scale. We’re looking forward to what’s next, and we’re glad you’re a part of it.
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I was on a family trip to the Phoenix area and caught up with old friend Tom Burke. We’ve known each other since my early editor days through his leadership of OPC Foundation. He left OPC Foundation some time ago and spent time with Mitsubishi and the CC Link Partners Association. Inductive Automation just introduced him as a Technology Evangelist. A good move for both.
Inductive Automation (who is a long time sponsor of The Manufacturing Connection and has no part in my writing this story) has impressed me ever since my first meeting with founder Steve Hechtman. The current leadership team is taking the company in a stronger direction with even more IT integration. As I mentioned in my latest podcast, I never thought I’d use words like Git and containers and dataops and MCP describing manufacturing software.
Given Tom’s history with OPC and the technology in that space, I’d expect him to be promoting the Inductive Automation ecosystem including the light weight messaging of MQTT and Sparkplug. Years ago, I wrote to him about how users were coming to prefer the simpler, lighter weight messaging to OPC UA, which was becoming ever more complex and cumbersome. This could get interesting.
Update 2: Check out this Om Malik look at the Block news. He looks at how Dorsey tried to switch the narrative from bad management to AI. Wall Street rewarded job cuts–as it always does. Not vision.
Update: John Gruber at Daring Fireball takes a similar stance on the news (knowing the history of Jack Dorsey), while The New York Times takes the AI hype road in its headline regarding the news.
Media companies are struggling to get beyond the hype of AI into reality. Once my favorite news source, Axios has suddenly become the media cheerleader for AI. You can still get the gist of news there, but use your BS filter when approaching AI items. Morning Brew is usually much more balanced—and witty.
Case in point. I’m copying news about Jack Dorsey’s layoffs at Block. Remember Dorsey? He led Twitter before it had to sell. Seemingly everyone in Silicon Valley knew that Twitter was terribly bloated. Proof—Elon Musk slashed 80% of the workforce and the company continued to operate.
AI is, of course, another in a long line of automation tools that will assist humans in doing their jobs. Studies I’ve seen reveal some usefulness of AI in programming. But it’s far from actually replacing humans.
Dorsey goes to Block. Hmm. Seems like it was bloated, also. He announces a 40% reduction in workforce. He, like predecessor CEO such as at Amazon, blames AI for the ability of teams to do more with fewer people. Financial analysts typically look beyond AI into the basic financial need to reduce a bloated workforce.
I bet your experience mirrors my experience that smaller teams are more likely to get things done. If you’re not sure, I encourage checking out Jason Fried and David Heinemeier-Hansson of 37 Signals and The Rework Podcast.
As a professor at university used to use on tests—compare and contrast.
It was only a matter of time before a future-thinking CEO took the leap and replaced thousands of workers with AI, Axios’ Dan Primack writes.
Why it matters: Block chair Jack Dorsey did just that yesterday. Wall Street’s standing ovation — the fintech company’s shares soared more than 20% in today’s premarket trading — gives other CEOs permission, even incentive, to consider the same thing.
Dorsey, an iconoclast who co-founded and once led Twitter, was blunt in announcing via X that Block will say goodbye to 40% of its 10,000-person workforce, cutting the company to just under 6,000. Block, based in Oakland, Calif., includes Square, Cash App, Afterpay and the Tidal music platform.
Dorsey wrote on X that “something has changed. we’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. and that’s accelerating rapidly.”
He said he “had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. i chose the latter.”
Dorsey added in a shareholder letter: “We’re already seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better. And intelligence tool capabilities are compounding faster every week.”
Zoom in: The fintech’s stock rallied as much as 25% on the news, after having been down more than 16% over the past year and 76% over the past five years.
Block’s declining stock price put Dorsey under pressure to make changes, although he denied that the layoffs were related to Block’s financial performance.
Reality check: CEOs will look to see if they can follow Dorsey’s lead, and most will realize they don’t have the talent to do it. This would destroy most companies — it’s very hard to do.
The big picture: Wall Street was captivated early this week by a viral doomsday scenario for AI’s coming effect on white-collar work. But the stated reasons for most other big AI-related layoffs so far have been much less explicit than Dorsey’s.
Many AI executives and investors insist that the tech will lead to temporary labor dislocations rather than net job loss, echoing the Industrial Revolution.
The bottom line: It’s one thing to replace people with machines. It’s quite another to prove that it makes business sense. If Block can grow its top line with a much smaller headcount, the rest of corporate America will take notice.
Payments company Block to slash staff by 40% due to AI pivot. In conjunction with its earnings call yesterday, Block CEO Jack Dorsey said it will reduce headcount “from over 10,000 people to just under 6,000.” The company will restructure around “smaller, highly talented teams using AI to automate more work,” according to Block CFO Amrita Ahuja. Affected staff members will receive 20 weeks of base pay, which the company expects will contribute to $450 million to $500 million in charges, primarily in the first quarter. Dorsey also said, “Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.” Block stock rose 24% in after-hours trading following the announcement.—HVL
Sort of following up on my recent podcast (also on YouTube) thinking about manufacturing activity and leadership (or lack thereof), this latest report from Interact Analysis (still my favorite analysis site) sheds some light on the matter.
2026 manufacturing industry output is likely to improve, but underlying uncertainty means it could swing positively or negatively, new analysis shows
Growth expected to reach 2.9% for 2026, with 2025-30 annual rate of 3.1% forecast
Asia to perform strongly, with India’s output predicted to rise to 5% in 2026
My podcast thinking was based on an article from The Wall Street Journal focused only on the US. This London-based firm takes a global view.
An ‘apprehensive’ 12 months is expected for the manufacturing industry in 2026, Interact Analysis says. According to the market intelligence specialist, the year could swing positively or negatively, depending on global events and tariffs. Its latest manufacturing industry output forecast suggests that, while the Americas and Asia regions experienced growth in 2025, 2026 is likely to see inventories normalize and global investment conditions improve, with modest recoveries anticipated in regions emerging from downturns.
I continue to think there are two prongs to manufacturing activity. Local and global economic trends matter greatly, of course. This includes such factors as individual income and confidence. But also one must account for lack of leadership in the sector—building for growth and researching, designing, and building products and services that fill real needs for customers (whether consumer or other businesses).
Interact Analysis predicts 2.9% growth for 2026, up from 2.0% in 2025. Longer-term, an average annual growth rate of 3.1% is forecast from 2025-2030, with total production reaching $48.1 trillion in 2030.
The manufacturing output [AS1] forecast for 2026 is slightly better than previous predictions, with trade, technology, and investment the key drivers behind the improvement. However, manufacturing still faces headwinds caused by global political tensions and conflicts, and the continuing risk of further tariffs and protectionist policies.
Capital investment perhaps focused on the wrong sector seems to be driving Wall Street market uncertainty at this time. Interact looks at investment more broadly.
In terms of investment, industrial demand remains resilient, as manufacturers attempt to offset the impact of tariffs, bringing cost pressures forward and reshaping the timing of investments. Meanwhile, adopting of technology is increasingly acting as a counterweight to structural weakness in other parts of the industrial base. For example, AI-based industries, like automation, HVAC, semiconductor equipment, and data centres are providing pockets of growth that support weaker industry sectors. Nevertheless, while near-term AI investment is supportive, legitimate concerns continue to surround long-term profitability and the scalability of returns, its applicability to broader industry and wider adoption, and the potential risk of overcapacity.
Tariffs? Who knows?
In terms of trade tariffs, there is now more clarity about what they will be and the subsequent short-term impacts, although the risk of further retaliatory measures remains. A resilient US economy could reduce the perceived economic cost of tariffs, increasing the likelihood of tariffs being introduced by other territories.
Asia leads the way in outlook, average annual growth and output
Interact Analysis expects all regions to experience long-term growth through 2026 and out to 2030, with smaller territories having more headroom for strong growth. Asia leads the way with projected 2026 growth of 3.2% to $30.1 trillion and a 2025-2030 average annual growth rate of 3.3%. India and South Korea look particularly strong, with respective 2026 forecasts of 5% and 3.5% growth in 2026. Meanwhile, for the Americas, the growth outlook for 2026 is lower than in 2025 at 2.2% to $9.6 trillion, with a 3.0 % average annual growth rate. Europe is anticipated to hit 2.5% growth in 2026 and total production of $8.4 trillion, following a challenging few years, with a growth rate of 2.2% forecast for 2026-2030.
Apprehension is a good descriptor.
Jack Loughney, Interact Analysis Senior Data Analyst, UK, says, “The primary sentiment going into 2026 could best be described as apprehension. Escalating geopolitical strife, punitive and retaliatory tariffs, and companies placing large bets on a golden goose whose profitability long-term is currently in question all lends itself to a year which could swing positively or negatively on a whim. Our current position is to expect modest growth but be prepared for this positivity to erode relatively quickly if global events start taking a turn for the worse.
“One underlying cause of this weakness is the uncertainty which accompanies the protectionist actions many regions are taking. The US did manage to grow in 2025 even in the face of tariffs, however, whether they were simply burning through buffer and will enter a much slower period this year should become quickly apparent as the year continues.”
I have been wondering how long Mitsubishi Electric Automation could continue on its own. Even given a couple of recent acquisitions (Iconics and Nozomi, for example), it follows other international control companies who followed customers establishing manufacturing in the US but were unable to displace Rockwell Automation as the dominant automation supplier here.
Mitsubishi Electric Automation, Inc. (MEAU) will transfer to Mitsubishi Electric US, Inc. (MEUS) as MEUS’s Industrial Automation Division to strengthen customer support and enable future innovation and growth
Mitsubishi Electric Automotive America, Inc.’s (MEAA) production facility in Mason, Ohio, will be transitioned to MEUS to support innovative production and manufacturing for Mitsubishi Electric US and Mitsubishi Electric Automotive America, Inc.
Experience and perspective comprise the curses of having been around for a few decades. I have seen all this corporate speak about efficiencies and the like before. They just point to the need to bring disparate components of the corporation together that can no longer exist on their own. The acronyms get a bit complicated, but here is the news.
CYPRESS, CALIF. – February 5, 2026 – Mitsubishi Electric US, Inc. (MEUS) today announced the structural reorganization of its United States-based businesses. Mitsubishi Electric Automation, Inc. (MEAU), will transfer to MEUS operations and Mitsubishi Electric Automotive America, Inc. (MEAA) will transfer certain operations and transition its Mason facility to MEUS. Thiswill collectively be known as Mason Division (MEUS MSN).
MEAU will transfer all operations to MEUS and be known as Industrial Automation Division (MEUS IAD), joining existing MEUS divisions Elevators & Escalators Division (MEUS EED), Semiconductor & Device Division (MEUS SDD), International Purchasing Division (MEUS IPD), Heating and Air Conditioning Division (MEUS HAD), Defense & Space Systems Department (MEUS DSS) and Americas Corporate Office (MEUS ACO) services.
Finally, MEUS, MEAA and MEAU shared services will integrate under MEUS ACO. This strategic move will streamline North American operations, enhance collaboration across the organization and make way for long term growth and innovation. The newly combined MEUS organization will be led by Mike Corbo, President & CEO MEUS and Chief Representative, Americas region.
Strategic goals of this reorganization include:
Innovation and Growth – Moving MEAU into MEUS to better serve its markets and customers by integrating processes, leveraging its data, and focusing on innovative, holistic solutions that cross divisions. The organization will explore new business models that combine hardware, software, and service solutions to better serve evolving market demands.
Talent and Culture – Unifying systems, policies and procedures will enhance corporate culture and cross-department integration, offering more opportunities for employees. A more unified brand will support recruitment and engagement.
Increase Efficiency – Unifying shared services and governance will streamline process and improve efficiency.
“Bringing MEAU under the MEUS organization as the new MEUS IAD is an exciting step toward the future, supporting the overall Mitsubishi Electric goals and vision,” said Mike Corbo, MEUS President and CEO. “Our expanded capabilities will bring us closer to customers, partners and innovative product and service offerings,” he continued. The impact for customers will include more streamlined offerings, simplified access to a broader range of complementary solutions, and a consistently high-quality customer experience.
In alignment with this reorganization, MEAA’s facility in Mason, Ohio will be brought under MEUS ownership. It will continue to host production, repair, distribution and innovation activities in support of MEAA and MEUS divisions, with additional support and innovation from the combined business units. MEAU manufacturing, repair, and warehouse operations servicing the factory automation industry located in Vernon Hills, Illinois, will relocate to MEUS Mason. Additionally, certain MEAA roles will transition to MEUS to strengthen operations and innovation across businesses.
Location moves and restructuring will begin in February 2026.
I was intrigued by an item in News Items by John Ellis quoting the Wall Street Journal regarding the continued slide in manufacturing employment in the US and the prolonged slide in manufacturing activity. The first Trump administration elicited promises of moving manufacturing to the US with the building of plants. Little of that actually happened. The Biden administration invested a few billion, but what has that brought. The second Trump administration thought that tariffs would provide the protection from competition to jump start manufacturing.
I pose the idea that it takes more than investment. And protection from competition really just allows local companies leeway to raise prices. What it really takes is better, bolder, visionary leadership to search out customer needs, design products they will buy, and then produce the products.
It takes more than waving a few dollars at the problem.
