United Technologies May Be Forced to Furlough 5,000

The furloughs are due to the government shutdown

   

UnitedTechnologies185 United Technologies May Be Forced to Furlough 5,000United Technologies (UTX) may be forced to furlough more than 5,000 employees if the government shutdown continues into the next month.

United Technologies, which supplies the U.S. military with helicopters and jet engines, will start the layoffs with 2,000 employees located in Connecticut, Florida and Alabama. These employees are expected to be laid off on Oct. 7. The 2,000 layoff will be followed by an additional 2,000 at Pratt & Whitney and UTC Aerospace Systems if the shutdown goes into the next week. More are expected to be laid off if the government shutdown continues into the next month. United Technologies gets around 18% of its revenue from the government, meaning that the shutdown is hurting the company’s business.The company has also been losing business due to mandatory budget cuts that force the military to shrink its budget by $500 billion over a decade, reports Bloomberg.

United Technologies employs roughly 218,300 workers. This means that the company’s furloughs will affect about 2% of its workers.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/united-technologies-may-be-forced-to-furlough-5000/.

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