UTC layoffs likely to affect roughly 750 in North America
HARTFORD, Conn.--United Technologies president and chief executive officer Louis R. Chenevert announced this week his company would undertake an additional $600 million in restructuring costs for 2009, bringing the total to $750 million and likely bringing about the loss of 11,600 jobs.
When asked how this would affect the company's Fire & Security business, spokesman John Moran said, "The restructuring will affect all UTC business units to some extent, but the exact number of jobs at individual business units and locations has not yet been determined." He emphasized the company was just beginning a difficult process.
Currently, the Fire & Security division, which includes installation brands Red Hawk and Chubb in North America, as well as manufacturers like Lenel, Kidde and Marioff, makes up roughly 11 percent of the company's roughly $55 billion in annual revenue. However, the F&S workforce is roughly 19 percent of the company's total employment.
Judging by these and other factors (see full analysis here ), the Fire & Security segment stands to lose roughly 2,500 jobs. Considering as much as 70 percent of F&S revenue comes from outside North America, an estimate of 750 jobs lost in North America is a very ballpark possibility.
According to the company's 2008 annual report, North American operations helped the Fire & Security segment grow about two percent in 2008, to $6.5 billion, with an operating profit of $542 million.