Tyco Safety Products to slash 52 percent of workforce by end of year
August 5, 2004
WESTMINSTER, Mass. - As a part of an already announced restructuring plan, Tyco said last Friday that it will slash an additional 400 of 766 manufacturing positions at its Westminster facility by the end of the year.
Despite the layoffs, the company reported strong earnings this week for the third quarter, ending June 30, with revenue reaching $923 million for the three-month period versus $844 million for the same time last year.
Tyco has five business segments under its corporate umbrella, including Electronics, Healthcare and Fire & Safety, which is where the Safety Products unit is positioned. Other business units under Fire & Safety include ADT, SimplexGrinnell and Software House.
"Tyco will continue to employ over 700 people here locally,Ã¢â‚¬Â says Chris Woodcock, director, marketing communications for SimplexGrinnell. Woodcock points out that the company employs 6,000 throughout Massachusetts and 260,000 worldwide. The companyÃ¢â‚¬â„¢s SimplexGrinnell unit is located in Westminster and its healthcare division is in the state in Mansfield.
Ã‚Â As a result of the cutbacks, the company will outsource the manufacturing of notification products and smoke detectors, for example. However, main control panels that carry the high-end SimplexGrinnell brand will continue to be made at the site.
Ã‚Â The company plans to conduct the layoffs in three waves with the first taking place late next month and the bulk concluding in late December. Earlier this year, the company reduced its staff at the Westminster facility by 75.
Ã‚Â Tyco has closed 142 facilities, reduced its staff by 5,300 and exited 17 businesses since announcing it would tighten its focus last November.