JCI targets 3,000 job cuts in salaried ranks
U.S. auto-parts maker Johnson Controls Inc. said it would reduce as many as 3,000 salaried occupations over the next two years as part of an on-going price savings plan.
The organization expects to conserve $250 million per annum after it minimizes its work force by about 2.5% over two years, according to a statement released Friday.
Johnson Controls began a cost cutting plan in July forward of the spin-off of its $2-2 billion automotive interiors device by 2016.
The company makes automotive seats, overhead systems, floor consoles, door panels and instrument panels.
The spin-off allows the firm to concentrate on its greater-margin creating efficacy and automotive battery functions.
The building performance company makes heat, ventilating and air conditioning techniques and had $14.16 billion in sales last year, while automotive batteries accounted for $6.63 billion of revenue.
The company bought back $1-billion of shares in financial 2015.
"As we constantly adjust to our changing enterprise portfolio, there's major opportunity on the other side of the firm for people to cut back costs, simplify procedures and improve our pace and agility," CEO Alex Molinaroli said in the declaration. "The measures we're taking now will empower a more aggressive, sustainable price structure for Johnson Controls as we continue to go the organization forward."
Bloomberg and Reuters contributed to the report
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