Rockwell Automation undertakes restructuring actions
October 21, 2008
By Manufacturing AUTOMATION
Milwaukee, Wisc. – Rockwell Automation is undergoing a massive restructuring to deal with the current market situation.
According to officials with Rockwell, the company is undertaking “restructuring actions designed to better align resources with growth opportunities and reduce costs in light of current and anticipated market conditions.”
Rockwell says the restructuring is the result of a comprehensive analysis of the companyÃs cost structure and is expected to generate cost savings of approximately $75 million in fiscal 2009, growing to $85 million in fiscal 2010.
In a statement, Keith D. Nosbusch, chairman and chief executive officer, said, “These actions are consistent with the cost management approach we outlined in July. Although fourth quarter revenue is in line with expectations, we believe it is prudent to take steps to address our cost structure while continuing to invest to maintain our competitive differentiation and further strengthen our global presence.”
The restructuring includes streamlining administrative and operations functions, realigning selling resources to the highest growth opportunities and consolidating business units. The restructuring headcount reductions, primarily in selling, general and administrative functions, equate to approximately three per cent of the companyÃs global workforce.