Tyco to cut more jobs at AMP

Tyco to cut more jobs at AMP
Tom Foremski
Tyco says that it will cut more jobs than initially planned at AMP which it acquired in a white knight deal that rescued the company from a hostile bid by Allied Signal.
AMP had originally said that 4,200 jobs would be cut as part of the merger with Tyco but that amount is likely to be increased significantly by an additional 4,000 jobs. Tyco said that it wants to reduce costs at AMP by about $650 million, more than double an earlier target of $300 million in cost reductions.
Tyco is expected to issue layoff notices to AMP workers this week as it works to integrate AMP into its other business operations. Allied Signal had promised that it would limit layoffs if it was successful in its acquisition bid but AMP management rejected the company’s offer, saying it undervalued the company.

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