Multiple sources are reporting that last week, Resideo Technologies’ company ADI unexpectedly executed layoffs of what they believe to be large numbers of employees, potentially in the hundreds. Many, if not most, of these layoffs are said to be centered on ADI’s Control4 unit legacy employees.
See what reports are saying on this alleged round of layoffs from ADI Global Distribution…
Multiple sources reached out to Strata-gee to reveal the fact that they were laid off last week by ADI Global Distribution, part of Resideo Technologies. These sources were mostly Control4-connected, some of whom had tenures with the company lasting decades.
In addition to those I heard from directly, there has also been some chatter in various online forums. In particular, one post that appeared both on a Control4 Facebook Group and in a Reddit Control4 sub-Reddit was widely circulated. This post was meant to be a warning to Control4 dealers, as the anonymous writer suggested that this move by ADI was a bad omen for the direction the company was taking the brand.
Sources Share the Sentiment of the ‘Warning’ Post
Sources told me they shared the sentiments expressed in this post, which was ultimately taken down from both forums. The writer’s emotions were raw and resonated throughout the pantheon of those affected by the layoffs. But beyond the emotional intensity, many of them agreed with the assertions made by the writer of the post.
The news of this unexpected and unannounced labor action by ADI emerged as the company approaches its planned spin-off from Resideo Technologies to its shareholders as a separate entity. ADI will be known as ADI Global Distribution, while Resideo’s other division, Products & Solutions (P&S), will continue on as an independent entity using the Resideo name. This transaction is expected to be finalized sometime this year between the middle of the third quarter to the middle of the fourth quarter. In just a couple of weeks, we begin the third quarter.
It Seems Reasonable to Suspect a Connection
It seems reasonable to suspect a connection between this layoff event and the rapidly approaching spin-off of ADI. In fact, just about a week ago, Resideo released updated information about the spin-off, including the fact that it has filed an “amended” Form 10 registration with the Securities and Exchange Commission. Part of that amendment was the inclusion of independent Pro Forma financial statements for ADI for the three-month period ending April 4, 2026.
I’m speculating here, but it seems quite possible that, in preparing freestanding financials for ADI, management came to the realization that profitability was not as strong as they’d like it to be, and it needed to take steps to make the numbers look better. The financial community sometimes refers to this as “window dressing” to make the stock look more attractive to investors.
The Inherent Duality of the Resideo Business Model
I have previously noted in my coverage of Resideo the inherent duality of its business. Its P&S manufacturing division generally books lower revenues but higher profits. On the other hand, distributor ADI books higher revenues but lower profits. Put them together with combined financials, and you get an almost perfect combination of growth in revenues AND profits. But separate the companies, and the reality is as glaringly obvious as seeing who is swimming naked when the tide goes out.
Another alternative explanation for this alleged round of layoffs could be that the company is continuing to rationalize workforce levels post-acquisition. It is not uncommon for acquirers to reduce redundancies by cutting duplicate employees. However, the sources in this story tell me that ADI had no employees duplicating Control4 engineering and product teams.
Online Facebook Group and Reddit Post Excerpts
The online post I’ve been referring to is titled Warning from a former employee, and was posted in a Control4 Facebook Group and on a Reddit Control4 subreddit. I believe it has been taken down from both Facebook and Reddit. Below are some of the key sections of Warning from a former employee…
Since this hasn’t made the news and it was cloak and dagger, I need to make an announcement so all you C4 dealers are aware of what you are now dealing with. I’m posting anonymously, suffice it to say I am now a former employee of ADI Global and control4 [sic]. I have been in the smart home industry for 15 years, the last 11 with the company. I loved my job and never worked a day in my life because it was a delight. I was laid off yesterday along with HUNDREDS of legacy Control4 personnel.
We pled and asked why and how many and who were being laid off. Our queries were only met with silence . We were the core of what made C4 so awesome back in the day. We were passionate about what we did and wanted to build the best product. We weren’t worried about money because it was a natural byproduct of our passion to build the best automation systems on the planet.
ADI CEO Has ‘Zero Comprehension of How Engineering and Development of 1P Products Work’
Yesterday the CEO of ADI laid off hundreds and the core of what made C4 great is now basically gone, at least its soul is. Rob Aarnes, CEO of ADI Global, is responsible for this massacre and betrayal. He has ZERO comprehension of how engineering and development of 1P products works. He only cares about sales, distribution and money.
What does this mean for C4 dealers? I’m worried about all of you. I don’t think he cares about you. He just wants to do his own distribution and cut you out. I might be wrong but that’s what I foresee. We’ve already seen huge drops in product quality and I’m afraid you’re going to see more. Just when things were looking up a few months ago now this happens. He’s going to run C4 right into the ground. I’m sorry to be the bearer of such news, but everyone who is as passionate as I am about the smart home industry needs to know about this.
This is not the entire post, just key elements of it. It was signed, “A former C4 professional who loved his work, as well as HUNDREDS MORE that are now out of work”…
More Feedback from Affected Parties
Yet another potential explanation for this round of layoffs at ADI seems to have a very logical foundation. In April 2024, when Resideo Technologies acquired SnapOne and its stable of brands – including Control4 – I found it curious that the company chose to put Control4 under ADI. Why is that curious? Because Control4 is a manufacturing company, which seems to suggest that it would be logical to combine it with Resideo’s Products & Solutions manufacturing division. But instead, they chose to put it under ADI…its distribution business.
As I spoke with some of the laid-off former employees, Control4 issues kept coming up. Even the original warning post called out troubling issues. For example, it claimed that ADI President Rob Aarnes “has ZERO comprehension of how engineering and development of 1P products works [sic]. He only cares about sales, distribution, and money.” Also, “We’ve already seen huge drops in product quality, and I’m afraid you’re going to see more.”
Agreeing and Amplifying the ‘Warning’ Post
Another laid-off Control4 employee I spoke with completely agreed with the warning post and even amplified some of its thoughts. Telling me, for example, “They [ADI] have no idea how to build their own products. They just want to sell, sell, sell whatever they can get their hands on.” He said that, from the beginning, he felt no passion, enthusiasm – or even any basic level of interest – from any of the ADI people for innovating exciting new products.
When I asked him if he agreed that Control4 product quality had declined, he practically shouted: “I absolutely do.” He went on to describe how ADI pressures Control4 to do less testing and just ship things out as fast as possible. With gear as technical as C4, thorough testing is necessary to avoid downstream problems. And sometimes those problems pop up quickly.
Bugs and Defects Galore
For example, he told me that when the new Luma X20 security cameras launched, “we had bugs and defects galore when they came out. There was a firmware issue that dragged on for a year. We were not ready to launch.” He said this is a clear example of the problems generated by failing to fully test products. ADI management, he says, places full priority on shipping above all else. “We were told by an ADI executive, ‘I don’t give a F….ship the damn product now!'”
“It’s horrendous…Control4 is in the hands of people who don’t know what they’re doing,” he moaned.
Will ADI Simply Stamp the Control4 Brand on Off-The-Shelf Gear From China?
Control4 did work with overseas manufacturers, but the company designed and engineered its own products. This was the key to being able to assure quality and to create unique and new capabilities. If ADI is planning to simply use the Control4 brand and perhaps just stamp the Control4 logo on off-the-shelf products from China, then we may see a real change in the role of Control4 in the market.
NOTE: I reached out to ADI’s PR agency and internal company communications people seeking comment on this development, but did not hear back from them by the time this story was posted. If I do hear from them, I will update the story at that time.
See more on ADI by visiting adiglobaldistribution.us.
Leave a Reply