Honeywell to Trim 4,000 Jobs as Part of Cost-Cutting Effort
Honeywell Inc. said today it plans to eliminate about 4,000 jobs and launch other cost-cutting moves by the end of this year because of increasing competition and slower growth in capital spending.
The Minneapolis-based computer company also said its board of directors on Tuesday authorized management to consider the purchase of Sperry Corp.'s aerospace business.
Sperry was merged into Burroughs Corp., another mainframe computer maker, earlier this week.
Honeywell’s stock price, which had risen sharply on speculation that the company would agree to be purchased or undergo some other major transaction, fell today. It was down $4.50 a share to $74 shortly after the opening of the New York Stock Exchange. Honeywell had risen $3.62 1/2 a share to $78.50 on Wednesday.
Honeywell, with 94,000 employees worldwide, said the work force will be reduced through attrition, early retirements and layoffs. In addition, salary increases will be severely limited in 1987.
It did not say precisely where the reductions will take place.
Honeywell makes computers, industrial control products and systems, and aerospace and military products. The company had 1985 revenue of $6.6 billion and net income of $281 million.