- Industrial conglomerate ABB is looking to save $500M in costs with a restructuring that will include cuts at the corporate office and a reshuffling of power into the hands of its business leaders.
- Along with a December sale of its power-grid unit to Hitachi, ABB will scrap country and regional structures across its other business lines, which include electrification, industrial automation, robotics and discrete automation and motion, the WSJ notes.
- Headquarters staff had already been cut in half, but more cuts are likely as the company finds duplicated activities at the country-level offices.
- It's hoping to retrain many employees into other open positions: It costs about €35K to retrain a worker in Germany vs. €100K to lay them off.
- “We’re going towards a fully global entrepreneur model,” CEO Ulrich Spiesshofer tells the WSJ. “That’s really a massive, massive change to the operational DNA of ABB.”
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