Johnson Controls suspends business in Russia

Johnson Controls Inc. headquarters
The Johnson Controls Inc. operational headquarters in Glendale.

Last updated on March 9th, 2022 at 12:07 pm

Johnson Controls is suspending business operations in Russia as the country’s invasion of Ukraine continues, according to a statement released Monday.

The company has 160 employees in Russia and earns about $150 million of revenue a year from the country. The impact of ceasing business in Russia is expected to be “immaterial” to Johnson Controls’ financials for the quarter and the financial year, the company said.

Johnson Controls, which is based in Ireland but has operational headquarters in Glendale, plans to fulfill its existing contractual obligations “to the extent possible” in compliance with all U.S. sanctions. Johnson Controls will not be accepting any new business or orders from Russia.

“Our decisions and actions reflect our steadfast values and our commitment to doing what is right,” reads the statement from the company. “We are inspired by the incredible support that our employees, customers, partners and communities are showing for Ukrainian people and their rights.”

Johnson Controls does have team members in Ukraine, mostly in software engineering or sales, who have reported to be safe. The company’s offices in Ukraine are closed but operational.

“Some of our employees have remained in Ukraine but relocated to areas where they report to be safe,” said Karen Tognarelli, director of public relations and media. “Where possible, some of our employees have safely evacuated to other countries, such as Poland and Romania. We are providing ongoing support, information and access to resources to assist them.”

To further support ongoing humanitarian efforts in the country, Johnson Controls also announced Monday a $250,000 donation.

Also this week, Wisconsin companies Rockwell Automation and Twin Disc suspended their business operations in Russia and Belarus.

According to a press release, sales to Russia and Belarus represent less than 0.5% of Rockwell’s total revenue.

Twin Disc leadership said the impact on the company’s financial results from suspending business in Russia “is not expected to be material.”

Last week, Milwaukee-based Harley-Davidson also ceased its business and shipment of bikes to Russia, according to a Reuters report.

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Ashley covers startups, technology and manufacturing for BizTimes. She was previously the managing editor of the News Graphic and Washington County Daily News. In past reporting roles, covering education at The Waukesha Freeman, she received several WNA awards. She is a UWM graduate. In her free time, Ashley enjoys watching independent films, tackling a new recipe in the kitchen and reading a good book.

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