Further job losses revealed in ICT sector

Electronics and engineering group Invensys has announced further cost-saving strategies that could see the company cut as many as 2,500 jobs in the next twelve months.

The company has been hard hit by the recent downward trend of the technology sector due to the sluggish nature of the current economic climate in the US.

In an official statement, Invensys stated that “in response to extreme trading conditions” the group would be continuing to reduce overheads and improve productivity, and that the year's ‘target headcount reduction’ of 3,500 had now been increased to 6,000.

The company stressed that they expect “a significant improvement in operating cashflow” in comparison to the first half of last year, notwithstanding the difficult trading conditions of the first half of 2001.

However, despite this display of optimism, Invensys has warned that first half operating profits are like to be at least 30 per cent below analyst’s predictions, and the company is also to lose its Chief Executive, following Allen Yurkio’s decision to retire at the beginning of 2002, after eight years at the head of the company.

Announcing his decision to leave, he said: “As the longest-serving Chief Executive in the automation and controls sector, I felt the time was right to hand over to someone able to bring a fresh approach to our markets, build support for his strategy with the financial community and lead Invensys as it comes out of the current economic downturn.”

He will be replaced by Rick Haythornwaite, former Chief Executive of the cement group Blue Circle which was recently bought out by French company Lafarge. (CL)