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23 July, 2001Electrical engineering group has announced plans to reduce its 163,000 workforce by 8 per cent.
SWITZERLAND/GLOBAL: After reporting two weeks ago a total freeze on hiring, ABB, Europe's biggest electrical engineering group, announced today, July 24, 2001, that "to counter difficult market conditions" it planned to cut 12,000 jobs or over 8 per cent of its workforce.
The Swiss-Swedish transnational company, formerly known as Asea Brown Boveri, says it will implement the job cuts over a period of 18 months, with approximately 8,000 jobs eliminated through outright dismissals, and 4,000 through natural attrition.
With half-year profits at $626 million, representing a drop of 21 per cent on the same period last year, the company claims that these results "reflect uncertainty in the investment climate as the U.S. slowdown spreads into Europe and Asia."
The IMF will be following the situation at ABB very closely and will provide an update as soon as possible.
The Swiss-Swedish transnational company, formerly known as Asea Brown Boveri, says it will implement the job cuts over a period of 18 months, with approximately 8,000 jobs eliminated through outright dismissals, and 4,000 through natural attrition.
With half-year profits at $626 million, representing a drop of 21 per cent on the same period last year, the company claims that these results "reflect uncertainty in the investment climate as the U.S. slowdown spreads into Europe and Asia."
The IMF will be following the situation at ABB very closely and will provide an update as soon as possible.