ADT cuts its workforce by 800
BOCA RATON, Fla. - In what some are calling cost cutting measures, Tyco International announced it reduced ADT Security ServicesÃ¢â‚¬â„¢ workforce yet again, this time by 800 people, and intends to relocate executives from here to a new corporate office in Princeton, New Jersey.
The changes come under the direction of TycoÃ¢â‚¬â„¢s new chief executive officer Edward Breen, who joined the company after its former chief executive, L. Dennis Kozlowski, and a number of other executives left amid accounting problems at the conglomerate.
The downsizing, which took place in early April, marks one of the largest layoffs for the company. Early last year, ADT let go of more than 700 employees after it bought SecurityLink in 2001.
In the past year, more than 1,500 positions at ADT Security Services have been eliminated, impacting people across the board, including managers, sales representatives, installers and administrative staff at the company, according to Ann Lindstrom, a spokesperson for ADT Security. Another 500 positions are expected to be eliminated through attrition, such as not filling vacant positions or as people retire.
The elimination of Jerry Bogess, the head of TycoÃ¢â‚¬â„¢s Fire and Security Division, could be counted among the latest round of employee casualties. Bogess and four other executives were fired after more accounting problems were disclosed in Europe and Asia.
Gary Holmes, a spokesman for Tyco, said the latest reduction is part of the companyÃ¢â‚¬â„¢s efforts to trim the companyÃ¢â‚¬â„¢s size to fit its needs. He said under-performing sales people and management layers in the field were among the positions that were eliminated.
Ã¢â‚¬Å“WeÃ¢â‚¬â„¢re constantly looking at staff levels, but weÃ¢â‚¬â„¢re not announcing anything major shortly,Ã¢â‚¬Â said Holmes.
In all, the layoffs will bring ADT SecurityÃ¢â‚¬â„¢s workforce from 25,000 people to 23,000. It represents slightly more than one percent of Tyco Fire & SecurityÃ¢â‚¬â„¢s overall workforce, which numbers around 110,000.
Despite ADT reducing its workforce by more than 1,500 people, it has not closed any of its offices nationwide, said Lindstrom.
According to a report in the Palm Beach Post, it moved management functions for its West Palm Beach sales office to Pompano Beach, but did not close that location.
Word that Tyco intends to relocate executives comes after the company reportedly signed a 10 year-lease on a 110,000-square-foot building in Princeton, N.J. While no timetable had been set for the move, it is expected to impact more than 150 highly paid employees.
Though incorporated in Bermuda, Tyco currently operates out of offices in locations in Exeter, N.H., Boca Raton, Fla., and New York.
The move, speculated Jack Mallon, managing director at Mallon Capital, will bring operations in line, and help to eliminate a bloated headquarters staff. He also noted that Tyco moved its executive presence to Boca Raton, Fla. at the direction of Kozlowski, who owned a home in the area.