USA: Emerson will not separate its industrial automation and air conditioning businesses, but will implement a $425m cost-cutting plan that will see 2,900 job cuts and closure of 145 facilities.
The decision comes after a comprehensive review of its activities following reports that one of its shareholders, the US hedge fund company D E Shaw & Co, was pushing for a split of its automation business and commercial and residential solutions interests. The latter includes Copland compressors and Alco controls for the refrigeration and air conditioning industry.
Speaking at an investor presentation in New York this week, CEO David Farr said that, in addition to the job losses, another 1,000 salaried employees could be asked to relocate.
Under pressure Emerson to conduct business review – 4 October 2019
USA: Rumoured to be under pressure from investors, Emerson has said it will conduct “a comprehensive review” of its operational, capital allocation and portfolio initiatives. Read more…