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by Stephanie Neil, MA Editorial Staff
Posted on Wednesday, October 01, 2008 4:36:20 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | Business unit consolidation and reduced headcount expected to generate a $75 million savings in fiscal 2009. |
| Keywords: | Rockwell restructuring, Rockwell layoffs |
In an attempt to stave off an earnings dip in fiscal 2009, Rockwell Automation has undertaken a restructuring program that will result in the consolidation of business units and a 3% reduction in its workforce.
In a statement issued yesterday, Rockwell noted that in light of current and anticipated weak conditions in the industrial market, the company must reconsider its cost structure and realign its resources to focus on regions and industries where there is growth. To that end, the company is “streamlining administrative and operations functions, realigning selling resources to the highest growth opportunities, and consolidating business units,” the company said.
As a result, the $5 billion company, which has about 20,000 employees around the world, will cut jobs related to administrative and operations functions, such as sales. This effort, which starts immediately, is expected to generate cost savings of approximately $75 million in fiscal 2009, growing to $85 million in savings in 2010, the company said. The company expects to take a $50 million pre-tax charge in the fourth quarter of fiscal 2008 as a result of the move.
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