AMP, facing flagging sales in Asia, said on Friday it will fire 3,500 employees, or about 8 percent of its work force, by year-end.
The world's largest supplier of electric and electronic connectors -- which link the electrical innards of devices from PCs to cars -- also said it will take unspecified charges in 1998 to cover the costs. AMP (AMP) said it will release more information with its second-quarter earnings on 24 July.
The job cuts will be made through firings, attrition, and early retirement.
Two AMP facilities in Loganville, Pennsylvania, and one plant in Kernersville, North Carolina, will be shut down. Operations will be transferred to plants in Pennsylvania, South Carolina, and North Carolina. In addition, the company will move some production to Europe and Asia. AMP said it will continue consolidation efforts over the next two years, but did not specify how.
"AMP will take whatever actions are needed to sharpen focus, simplify processes, and increase responsiveness," said William J. Hudson, CEO and president, in a statement.
AMP announced the cuts as it revealed plans for increased outsourcing and new sales initiatives.
The company employs 46,500 people in 53 countries. Last year's net income was US$473 million on sales of $5.7 billion.
In recent months, however, AMP has been hit by overcapacity and slowing sales in Asia, where much of the world's electronic devices are assembled.
Company officials could not immediately be reached for comment.
AMP's stock was down 38 cents at $31.31 in early afternoon trading.
