- Company sees efficiency saving up to $250 million annually
- JCI looks to simplify processes as it restructures business
Johnson Controls Inc., while spinning off its automotive-interiors unit, said efforts to streamline the business will lead to as many as 3,000 job cuts.
The company expects to save $250 million annually after it reduces its workforce by about 2.5 percent over two years, according to a statement released Friday.
Johnson Controls, based in Milwaukee, said in July that it’s spinning off its automotive unit, which includes one of the world’s leading suppliers of seating, to focus on its building efficiency and batteries units. The company bought back $1 billion of shares in fiscal 2015.
“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,” Chief Executive Officer Alex Molinaroli said in the statement. “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.”