Otis Elevator To Restructure, Could Cut Jobs

Otis Elevator Co said yesterday it planned a restructuring of its operations that could result in more than 2,000 job cuts globally.

Otis, a subsidiary of United Technologies Corp, said in a statement it would immediately reduce the number of its worldwide engineering centers to six from 19. It said it had closed its European headquarters in Paris and reorganised its global operations.

Otis said the actions would result in a charge to its first quarter results. It said the charge, which it did not quantify, plus a previously announced charge to be taken by another United Technologies unit, Carrier Corp, would be largely offset by a gain on a favourable settlement of a contract dispute in another area of the parent company. Otis said it had formulated new senior management functions for worldwide product strategy and more effective integration of its engineering, manufacturing, purchasing and quality activities.

 

Otis said it will complete a global manufacturing rationalisation programme to reduce the number of its international factories and downsize others.