Johnson Controls announces job cuts to ‘global workforce’

Published 3:21 pm Friday, September 18, 2015

The company that operates a Clanton automotive parts manufacturing plant has announced it will cut 3,000 employees from its global workforce.

Johnson Controls announced Friday a reduction that would represent 2.5 percent of total employees in the company’s global workforce.

Johnson Controls Spokesman Fraser Engerman declined to elaborate on whether the cuts would affect the Clanton plant, which manufactures vehicle components.

“We are not releasing specifics on where the reductions will occur,” Engerman said. “I can say [the cuts] will be across our business units and will be across our locations.”

The workforce reduction is part of an initiative designed to deliver up to $250 million in annual cost savings, according to the release issued by the company.

The cuts will occur over the next two years.

In its third quarter earnings announcement, the company announced it was initiating a comprehensive cost-saving program to address existing costs, according to the release. Productivity improvements continue to be realized through the ongoing implementation of the Johnson Controls Operating System, which is lowering annual operating expenses through standardization, simplification and waste reduction across the company.

“As we continually adapt to our changing business portfolio, there is significant opportunity across the company for us to reduce costs, simplify processes and increase our speed and agility,” said Alex Molinaroli, chairman and CEO. “The steps we are taking now will enable a more competitive, sustainable cost structure for Johnson Controls as we continue to move the company forward.”