Invensys cuts jobs again

May 31, 2001
Web posted at: 1017 GMT

LONDON (CNN) -- The UK industrial automation and controls group Invensys is to cut another 3,500 jobs due to the economic slowdown in its U.S. market.

Invensys reported it shed 5,500 of its 90,000-strong workforce in the year ending March 31 in response to tough market conditions in the U.S. and a restructuring of its software systems division.

Chief Executive Alan Yurko told reporters at a news conference the next round of cuts will be made around the world in the first half of the new financial year.

"The focal point will be around the controls and power systems businesses because those have the toughest economic environments," he said.

Yurko also announced a delay in the planned flotation this summer of its power systems unit "until market dynamics improve." It cited delays in the rollout of DSL technology, 3G wireless and data networks as significantly hitting spending in the sector.

Invensys reported a 19 percent fall in full-year operating profit before exceptional items to £929 million ($1.3 billion), down from £1.15 billion the previous year. Four analysts polled by Reuters had given a range of £912-£935 million for full-year profits.

Invensys's share price has been under pressure since its took over the loss-making Dutch software maker Baan. The acquisition was announced a year ago. Invensys said Baan made a £6 million profit in the second half and won more than 200 new customers.

Invensys shares were up 3.7 percent at 139 pence on Thursday in London.

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Invensys to axe 5,000 jobs – Mar. 22, 2001

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