Tuesday, March 10, 2009

UTC to cut 11,000 jobs globally

By Brendan Lynch

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United Technologies Corp. plans to lay off 11,600 employees worldwide, according to the company.

Hartford, Conn.-based UTC blamed the reductions on anticipated 2009 revenue of $55 billion, which is below expectations due to the recession, the company said. The company reported a fiscal 2008 net income of $4.7 billion on revenue of $58.7 billion.

UTC (NYSE: UTX) said restructuring would come mostly from reductions in overhead and selling, general and administrative expenses. The company also said it might make further, hourly employment changes in 2009 based on market conditions.

UTC also changed its stock buyback program, reducing to $1 billion from $2 billion.

Last month, the U.S. Air Force awarded UTC subsidiary Pratt & Whitney a $285 million contract to provide maintenance for its F119 engines and the F-22 Raptor fighter plane.

Last fall, the company took in two deals totalling almost $1.6 billion. In November, Pratt & Whitney landed a potential $185 million from the Air Force to develop engines intended to affordably operate at 10 times the turbo-propulsion capability of current aircraft engines. In October, Pratt & Whitney won a contract potentially worth $1.4 billion from the Boeing Co. for engine maintenance on C-17 aircraft.