Eaton Corp., Cleveland, said it would cut 5,200 jobs as part of a plan to reduce costs because of a drop in demand for its products. The move is intended to help the company reduce costs by $125 million in 2009 and follows 3,400 job cuts last year.
"We took significant employee reduction actions in 2008 in anticipation of the severe downturn, and in January we have taken further actions," said Alexander M. Cutler, Eaton chairman and CEO."The continued decline in our end markets in early 2009 unfortunately necessitated that we reduce our workforce even further than we
originally anticipated. The employee reductions in 2008 and 2009 total about 10 percent of our full-time workforce."
Eaton also announced that its businesses are being reorganized into two sectors — Electrical and Industrial — with a vice chairman and chief operating officer for each sector. The changes are effective Feb 1. Thomas S. Gross has been named vice chairman and chief operating officer – Electrical Sector. Gross will succeed Randy W. Carson, chief executive officer – Electrical Group, who will retire at the end of April.