Johnson Controls Inc., Wisconsin’s largest publicly traded company, has reduced the headcount at its corporate headquarters in Glendale.
The company will not disclose the number of affected employees, most of whom were informed on Monday, said Fraser Engerman, director of global media relations.
“This is due to business reasons and the continued financial challenges that Johnson Controls faces in 2012 and then into 2013,” Engerman said. “We’ve decided that it’s necessary to continue cost reduction efforts by reducing the corporate headcount.”
Johnson Controls has offered affected employees severance packages and assistance in finding new jobs, he said.
“These are difficult decisions and we certainly understand the impact that it will have on our employees. We believe we are offering employees a severance package that is fair and supports them finding a new position outside the company,” Engerman said. “However, we need to assure our overall cost structure remains competitive, and given the revised topline revenue growth and the importance of being profitable, we are taking these cost reduction measures.”
Johnson Controls has 3,425 employees in the Milwaukee area. Of those, 511 are corporate employees who could be affected by the reduction.
The company reported record fiscal first quarter earnings and revenues in January. Net income rose to $410 million, or 60 cents per share, up from $375 million, or 55 cents per share, in the same period last year.
The firm’s second quarter earnings are scheduled to be released April 20.
Johnson Controls also announced Monday that St. Louis-based Emerson Electric Co. has acquired its Denmark-based Marine Container and Boiler business.
Johnson Controls’ Denmark-based Marine Container and Boiler business supplies controls for optimal operation of refrigerated sea containers and marine boilers, along with solutions that monitor and report on refrigeration conditions within large groups of marine shipping containers on land or at sea to ensure product quality and food safety.
The Marine Container and Boiler business was part of the Johnson Controls Marine & Navy organization. The remaining businesses within the Marine & Navy organization are not part of this transaction and will continue to operate under Johnson Controls.
