Engineering firm ABB to cut over 10,000 jobs

Swiss engineering group (ABB) is to cut over 10,000 jobs as part of a restructuring programme, its chief executive said today…

Swiss engineering group (ABB) is to cut over 10,000 jobs as part of a restructuring programme, its chief executive said today.

Mr Juergen Dormann said job cuts would number "in the double digit of tens of thousands" but did not give a figure.

The group had net debts of $5.5 billion at end-September and repeated its goal of cutting that to below $2.6 billion by the end of this year. Total debts stood at $9.3 billion at end-September, down from $9.8 billion at end 2001.

The group narrowly escaped a fresh cash crisis at the start of the week with the European Union approval of the $2.3 billion sale of finance and leasing activities to GE Commercial Finance.

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In March and April this year, banks came to its rescue and shored up finances. ABB bonds are still rated junk by Moody's and at the lowest investment grade by Standard & Poor's. Further debt cuts could prompt re-ratings over next year.