NEWS

Johnson Controls to cut 3,000 jobs in two years

Monday, Sep 21, 2015

U.S. auto parts maker Johnson Controls Inc (JCI.N) said it would cut as many as 3,000 jobs over the next two years as part of its ongoing cost savings program.

The company said the job cuts represent about 2.5 percent of its total workforce and would deliver up to $250 million in annual cost savings.

Johnson Controls initiated a cost cutting program in July ahead of the spinoff of its $22 billion automotive experience business by 2016.

The business makes automotive seating, overhead systems, floor consoles, door panels and instrument panels.

The spinoff will allow the company to focus on its higher-margin building efficiency and automotive battery operations.

The building efficiency business makes heating, ventilating and air conditioning systems and had $14.16 billion in sales last year, while automotive batteries accounted for $6.63 billion of sales.

The company's stock closed at $41.45 on the New York Stock Exchange on Thursday.

 

reuters.com

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