New Hampshire based Tyco International stock fell 17 percent today, after the company announced it will close two dozen plants around the world, lay off thousands, and scrap plans to split up the company.
NHPR's David Darman has more.
During an early morning conference call, Tyco International�s Chief Executive officer admitted the plan to split up the company had been a mistake. But CEO Dennis Kozlowski said a horrible telecommunications market had also hurt the company�s performance, forcing him to make drastic cuts in operations.
28 we will spend around 330 million dollars to reduce ongoing costs. We will reduce headcount by around 7 thousand one hundred people and close 24 facilities. The vast majority of these actions relate to the electronics and subsea manufacturing operations. While this is very painful, there really is no alternative, given the state of the markets. 28 24
Tyco has not indicated which plants will close, or where the layoffs will occur. Tyco has two plants in New Hampshire, in Exeter and Newington, but state officials say they doubt many of the layoffs will happen there. That�s because last fall, Tyco laid off more than one thousand people from those plants. That leaves only about 350 workers in the two facilities. Michael Power of New Hampshire Workforce Opportunity Council says his group, which is affiliated with the state, is ready to help if word comes that more layoffs are on the way.
36 12 if they occur in nh, then we�ll work with tyco to move in a rapid response team immediately. And that means, getting a chance to meet with the workers and explain to them what kinds of benefits they will be eligible for, in terms of unemployment insurance, and training and educational benefits. 37 17
Tyco�s layoff of more than one thousand workers has had something of a damping effect on the seacoast economy. But state officials say the effect has not been as severe as the shut down of pulp and paper mills last summer in Berlin and Gorham. Officials say that�s because the north country economy is more dependent on the wood industry than the seacoast is on any one company or industry.
Despite the strength of the seacoast economy, Governor Shaheen is asking the federal government for a 734,000 dollar grant, to help retrain workers. Michael Power of the Workforce Opportunity Council says the money is crucial to help many of the displaced workers from Tyco.
35 35 �Because it will get those people into nh work centers to basically provide them the assistance they need to find new careers and to get education and training that they need and an appropriate company that needs new workers. 35 53
Labor analysts say Tyco�s one thousand eliminated jobs join thousands more that have disappeared from New Hampshire�s manufacturing sector. Despite the losses, analysts say there is hope for the displaced workers, because while some industries contract, others may soon be looking to hire.
