I started receiving messages Wednesday about layoffs at Rockwell Automation and have spent much of the day running down the story. There are a bunch of rumors flying around with estimated numbers. I talked with a Rockwell spokesperson this afternoon to try to get the real information. I had floated numbers I've heard that ranged from 1,400 to 2,100. While he wouldn't confirm exact numbers, he said these were way too high. (and, yes, I believe him) A plant in Cambridge, Ontario will be closed that will cost 115 jobs. I've heard enough other anecdotal messages to believe that the numbers would be a few hundred.
This is part of an announced cost reduction program that is expected to total $240 million this fiscal year (Oct. 1 through Sept. 30). While they are tackling more reductions than just jobs, you can do the math and see that by the end of the year the total headcount reduction will be substantial. For example, they have been also consolidating a few business units--something that reduces some headcount along with rents and other expenses. We'll just have to wait and see what areas get the brunt of cuts to get a signal of Rockwell's direction. In addition, all salaries that could be frozen (not subject to bargaining unit contracts) were frozen this FY.
This is not a situation unique to Rockwell. The actual headcount reductions seem to be higher, but Yokogawa has also announced cost saving steps including cuts in executive pay to counter both anticipated sales decline and, in its case, decline of the Yen.
It's a tough situation. I hope we work our way out of this mess.
6:03:51 PM 
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