AlliedSignal to eliminate division management, form 11 business units Individual operations to get more independence

850 jobs may be affected

Manufacturing

October 02, 1997|By BLOOMBERG NEWS

MORRIS TOWNSHIP, N.J. -- AlliedSignal Inc. said yesterday that it will eliminate its division management structure and promote the presidents of two divisions to new positions as vice chairmen of the board.

The company's businesses are now organized within its aerospace, automotive and engineered materials sector offices. AlliedSignal said those divisions will be eliminated within 30 days and replaced with 11 business units, providing the individual operations with more independence.

The operations of the three divisional offices will be moved to the corporate or business-unit level or eliminated, the company said. Between 800 and 850 people -- about 1.2 percent of its work force -- will be affected by the changes, said Kristin Lemkau, an AlliedSignal spokeswoman.

The company has yet to determine how many of those jobs will be transferred and how many jobs will be eliminated, she said.

"Removing the sector layer will enable these businesses to make faster decisions and serve customers with greater speed, flexibility, and cost effectiveness," said Lawrence Bossidy, chairman and chief executive.

The aerospace sector of the company has two sizable units in the Baltimore area, neither of which will be affected by the changes, Lemkau said.

The Communications Systems division in Towson employs about people making air traffic radar systems, satellite communication terminals, encryption equipment and aircraft identification gear. The Technical Services Corp. in Columbia employs about 3,000 and provides technical support and engineering services in space, defense and transportation markets.

Lemkau couldn't say how much money will be saved by revamping the administrative structure of the company, which makes auto parts, chemicals, fibers and plastics. Bossidy has long planned to make the changes, she said.

In conjunction with the changes, Daniel Burnham, president of the aerospace division, and Frederic Poses, president of the engineered materials division, have been named vice chairmen of the board. John Barter, president of the automotive division, will leave AlliedSignal next April to pursue other interests, the company said. Burnham and Poses will report to Bossidy. The promotions could establish them as candidates to succeed Bossidy, who retires in April 2000.

Pub Date: 10/02/97

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