Saturday, December 27, 2014

TE Connectivity cuts jobs as industry slows

Follows SAP slowdown, Boeing consolidation

TE Connectivity cuts jobs as industry slows

TE Connectivity, the former Tyco Electronics and successor to AMP, has told some employees it plans to cut around 5% of its 90,000 workers, according to a central Pennsylvania professional familiar with the company. Two company spokespeople weren't immediately available for comment.

Yesterday TE boss Thomas Lynch told investors in a conference call that the company expected to cut $75 million a year in expenses to "get our cost structure down" due to "uncertain" worldwide sales and "weak" markets. The company's revenues totalled over $13 billion last year. TE supplies electrical connections and other parts for road vehicles, smartphones, electrical systems and other industrial markets in China, the U.S. and Europe.

TE Connectivity is nominally based in Switzerland to reduce its U.S. taxes, but actually run from offices in Berwyn. The company operates former AMP locations in Mechanicsburg, Manheim, Mount Joy, Middletown, and other central Pennsylvania towns, mostly as warehouses, and a Carlisle-area precious metals facility; it also manufactures in China and other countries close to its manufacturing customers.

TE isn't the only sign of a corporate employment slowdown. As I reported here last month, Newtown Square-based business software maker SAP Americas has reduced hiring this fall and into next year, after growing rapidly over the past year. SAP employs around 3,500 in the region.

AP (via Delco Daily Times) says here that Boeing Corp. has been cutting bosses in its military contracting divisions by 30%, though it's not immediately clear how that will affect the company's Delaware County helicopter works, one of the region's largest industrial employers.

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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