Despite a 9% revenue increase so far in 2001, ABB announced Oct. 24 that a decline in orders and expected earnings is forcing it to accelerate its cost reduction program, including its plan to eliminate 12,000 jobs, announced this past July. "We need to become leaner as fast as possible, given the economic climate," says Jorgen Centerman, ABB's president and ceo.
Despite a 9% revenue increase so far in 2001, ABB announced Oct. 24 that a decline in orders and expected earnings is forcing it to accelerate its cost reduction program, including its plan to eliminate 12,000 jobs, announced this past July. “We need to become leaner as fast as possible, given the economic climate,” says Jorgen Centerman, ABB’s president and ceo. About a third of the layoffs are expected to come through natural attrition, while the overall reduction program is expected to cost about $500 million, and save the same amount per year. Now, however, ABB reports more of these cost cuts will occur in 2001. The original program had an 18-month schedule. ABB employed more than 162,500 people as of September 2001.
