York Cutting Jobs Overseas

The company wants to reduce costs.

Author:: TSC Staff
Publish date:: Sep 20, 2005 5:33 PM EDT

York International (YRK) said it would cut 1,300 jobs overseas in an effort to cut costs.

The company said the plan would cost $100 million before taxes over seven quarters. Streamlined operations should deliver pretax savings of about $35 million annually in 2007 and thereafter.

York, which agreed last month to a merger with

Johnson Controls

(JCI) - Get Report

, said the restructuring "includes plans to divest non-core operations at an appropriate price, close one manufacturing facility and significantly downsize another factory." York said the merger is on track to close in December.

"These actions will support our objective to deliver significant long-term improvements in our operations," CEO David Myers said. "I am confident that the planned actions will be executed well and will allow us to better support our customers and position us for steady profitable growth in the European markets."

York fell 15 cents Tuesday to $56.17.