Westinghouse to Lay Off 2,000 Before Spinoff

Reuters

Westinghouse Electric Corp. said it will lay off 2,000 people and take charges of up to $200 million as it prepares to spin off its industrial operations from its broadcasting businesses. The announcement comes after an Internal Revenue Service ruling that the spinoff would be tax-free. Pittsburgh-based Westinghouse said the new industrial company, including the power generation and energy units, will retain the Westinghouse name; the remainder will be called CBS Corp. Two-thirds of the layoffs will come in its power generation unit, Westinghouse said. The charges will be for start-up delays and expenses at its power generation business, among other expenses. Westinghouse's stock closed at $26.75, down 88 cents, on the New York Stock Exchange.

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