Tyco International Ltd. (West Windsor, NJ) reported a narrow fiscal fourth-quarter net loss, and unveiled plans to exit some businesses and consolidate others. Tyco expects the restructuring and divestiture program to result in the loss of about 7,200 jobs and save $230 million a year by 2005. The 7,200 jobs to be eliminated represent 2.8% of Tyco's worldwide work force of 260,000 employees.
Tyco intends to sell Tyco Global Network, its undersea fiber-optic telecommunications network, and it plans to exit more than 50 other businesses it didn't identify. The businesses had combined annualized revenue of $2.1 billion in fiscal 2003, or about 6% of its total revenue base. More than half of the businesses Tyco is quitting are in the fire-and-security segment. The restructuring program calls for consolidation of 219 facilities; Tyco expects restructuring charges to total about $400 million, with most to be expensed in fiscal 2004.
"Our divestiture and restructuring moves will accelerate our ability to improve our profitability as we continue to make the transition from an acquisition-focused enterprise to a high-performing operating company," Chairman and Chief Executive Edward Breen said.
