ADT lays off 500
BOCA RATON, Fla.--As part of a cost-containment process begun six months ago, ADT Security Services has cut 500 jobs nationally.
“While ADT Security Services has fared better than many companies during the recession, particularly in the home alarm business, lower sales volume for security at retail and other commercial establishments is causing us to reduce our workforce by 500,” said ADT spokeswoman Ann Lindstrom.
The layoffs occurred in February and represent about two percent of ADT’s work force of 24,000. “These are not across-the-board reductions, but are focused primarily on jobs that serve the areas of our business most dramatically affected by the recession,” Lindstrom said.
Six months ago, ADT began working on cost-containment, Lindstrom said, to “reduce overall company operating costs including tightening discretionary spending, and reducing meetings and travel.” Qualified employees will be eligible to receive severance packages and outplacement services.
During the most recent earnings call of ADT parent company Tyco International, CEO Ed Breen said that, based on the slowing economy and the need to appropriately adjust Tyco’s cost structure, Tyco expected to increase its restructuring activity in 2009 to a range of $100 million to $150 million.
Despite a slowdown in certain areas of Tyco’s businesses, the February earnings report beat Wall Street expectations and resulted in a jump in the company’s stock price.
ADT’s North American residential business grew its recurring revenue four percent organically during that quarter.