Johnson Controls, announced mid-September it is planning to reduce its global workforce by as many as 3,000 people, or 2.5% of total employees, through comprehensive initiatives designed to ultimately deliver up to $250 million in annual cost savings. These cuts will occur over the next two years.
In its third quarter earnings announcement, the company announced it was initiating a comprehensive cost saving programme to address existing costs.
“Productivity improvements continue to be realized through the implementation of the Johnson Controls Operating System which is lowering annual operating expenses through standardization, simplification and waste reduction across the company,” said a company statement.
“As we continually adapt to our changing business portfolio, there is a significant opportunity across the company for us to reduce costs, simplify processes and increase our speed and agility,” said Alex Molinaroli, chairman and CEO.
“The steps we are taking now will enable a more competitive, sustainable cost structure for Johnson Controls as we continue to move the company forward.”