Honeywell’s aerospace division to cut 2,000 jobs
Morris Township, NJ—As part of a webcast announcing a 10% increase in its second-quarter sales, Honeywell International confirmed last week that it plans to eliminate about 2,000 jobs in its Phoenix, AZ-based aerospace division.
Morris Township, NJ— As part of a webcast announcing a 10% increase in its second-quarter sales, Honeywell International confirmed last week that it plans to eliminate about 2,000 jobs in its Phoenix, AZ-based aerospace division. Though about 10-20% of the job cuts will occur via at-trition, most will be made as layoffs through the end of 2005.
These job cuts will affect about 5% of the aerospace division’s 43,000 employees worldwide. Approximately 36,000 of these workers are in the U.S., and about 12,000 are in the Phoenix area.
Honeywell reports it’s downsizing to help streamline the aerospace division, and make it more responsive. A company spokesperson says Honeywell’s aerospace business is growing and that its sales are up. However, customers consistently report that it’s difficult to do business with the aerospace division because it has too many organizational layers, and that those layers don’t work closely enough with each other.
On the financial side, Honeywell reports its sales swelled 10% during 2005’s second quarter to $7 billion compared to $6.4 billion in 2004, primarily due to organic sales growth in each of its four businesses. The company also reported earnings of 36 cents per share, including a tax charge of 18 cents per share for the repatriation of $2.7 billion of foreign earnings related tollion before the aforementioned tax charge) versus $361 million last year.
Control Engineering Daily News Desk
Jim Montague, news editor