United Technologies to cut 11,600 jobs
Technology manufacturer to slash about 5% of global workforce after 2009 revenue forecast sinks due to economic turmoil.
NEW YORK (CNNMoney.com) -- High-tech manufacturing company United Technologies Corp. said Tuesday it will issue 11,600 layoffs this year due to the deteriorating global economic outlook.
The company expects the job cuts, which total about 5% of United Tech's total global workforce, will cost about $600 million. Combined with about 6,400 previously announced job cuts in 2008, the company believes the restructuring moves will save the company $1 billion this year.
"The outlook for commercial aerospace and global construction markets has continued to deteriorate since UTC's December investor meeting and the economic recovery previously anticipated in the second half of 2009 now appears unlikely," said Louis Chenevert, chief executive of United Tech. "These expanded restructuring actions are required to protect UTC profitability and are expected to position the company for resumed earnings growth in 2010."
The Hartford, Conn.-based manufacturer said the restructuring is in response to its 2009 revenue forecast that is $2.7 billion below what the company expected to make when it made its forecast in December.
The company revised its 2009 earnings per share guidance to a range between $4 to $4.50. Analysts currently expect earnings between $4.30 and $4.95.
Shares of United Technologies (UTX, Fortune 500) rose slightly in early trading.
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