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Rockwell eyes job cuts
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June 26, 1998: 6:56 a.m. ET
Report says ex-defense giant, facing low growth, to cut 10 percent of workforce
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NEW YORK (CNNfn) - Rockwell International Corp. reportedly will unveil as early as Friday plans to cut about 10 percent of its workforce, or roughly 4,800 jobs, as the industrial-automation company grapples with lagging growth and Asia's market woes.
The one-time defense giant is expected to announce the cuts as part of a wider company restructuring plan, with details to emerge in the coming weeks, the Wall Street Journal reported on Friday, citing people close to the matter.
Costa Mesa, Calif.-based Rockwell, which sold off its defense and aerospace operations two years ago, has been paring down to focus on microchips used in computer modems - such as the V.90 chip - and various plant-floor automation products.
Rockwell's industrial automation businesses, slumping alongside Japan's economic turmoil, are expected to grow by just three percent this year, analysts told the paper.
The company's stock price, which has fallen nearly 17 percent in the last month, could get a jolt from the announcement.
Shares of Rockwell (ROK) climbed in heavy trading on Thursday amid speculation of the pending job cuts, gaining 1-1/8 to 48-15/16. 
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Rockwell
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