Major tech company feeling the crunch
United Technologies Research Center
United Technologies Corp., maker of Otis elevators and Carrier air conditioners, says it will slash 11,600 jobs worldwide. The company is struggling with lower sales and profits.
Chief Executive Officer of United Technologies Louis Chenevert says the company had been expecting an economic recovery during the second part of this year. Now, Chenevert says that recovery “appears unlikely.”
Company is losing billions
United Technologies’ sales are down $2.7 billion from what it forecast in December. The company serves markets all over the world.With recessions going strong in Europe and other parts of the world, the company is preparing for more declines in profits and sales.
Restructuring begins
Chenevert says the job cuts and other changes the company is making are part of a restructuring. United Technologies is ultimately preparing for economic recovery, the CEO says.
“We’ll fundamentally reorganize United Technologies so when markets recover this cost structure will not come back,” Chenevert said, referring to the companies’ stocks losing value.
Economists doubt stimulus
In more bad news on the job front, economists released a report today saying they do not think the government’s economic stimulus package will create or save 4 million jobs over the next two years.
The report was created by four economists, including including Mark Zandi of Moody’s, who has been an adviser to both Democrats and Republicans. The group says the $787 billion stimulus package will save or create 2.5 million jobs in the next two years.
Word from the inside
Nancy Pelosi
Speaker of the House Nancy Pelosi, a Democrat, says she believes that it will take a long time to recover from what she refers to as “the Bush economy.” She didn’t refute any of the claims in the economists’ report.
Other Democrats have hinted that even more quick loans might be needed before the economy is truly on its way to recovery.
Discussion of United Technologies Plans to Cut 11,600 Jobs