Tyco to reduce costs through staff cuts

Tyco to reduce costs through staff cuts
Tom Foremski
Tyco, which recently acquired AMP, is looking for $1bn in cost savings, mostly through staff cuts.
According to a conference call given by Tyco CEO Dennis Kozlowski, the company wants $1bn in cost savings over the coming two years. The former AMP division will bear a high proportion of the cost cutting and is expected to shrink its staff from 48,000 to 39,000 through a combination of layoffs and natural attrition.
AMP had talked about cost cutting of $320m and when Tyco announced its acquisition, that figure was raised to $650m, and now has been raised again. Kozlowski said that one positive sign was that AMP’s revenues were better than expected in the last quarter, beating an estimate of a five per cent reduction in revenues.

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