Tyco to Streamline Corporate Operations, Locations; Says It is Investigating Deals
In a company statement, Tyco Int’l Ltd. said it is
streamlining its corporate operations in Exeter, N.H., New
York and Europe and reducing its corporate staff by
eliminating nonessential corporate functions. The company
said its more than 250,000 employees worldwide working in
the conglomerate’s operating units will not be affected by
Mark Swartz, Tyco CFO, said these actions are expected to reduce approximately 115 corporate staff positions and save the company about $125 million annually.
Tyco’s three buildings at Tyco Park in Exeter will be sold and operations will move to its telecommunications building. Its New York offices will also move to a smaller and “more cost-effective” location. Both moves are to be completed by Sept. 1. In addition, a number of corporate departments will be eliminated and their assets sold.
“We are moving quickly to streamline our corporate operations to ensure that we manage Tyco with financial discipline and a relentless focus on support of our operating businesses,” said John Fort, Tyco interim CEO.
In other company news, Tyco said it is investigating deals involving Fort that could raise more questions about conflict of interest at the company, a source familiar with the situation told AP.
The article states Fort was on the Tyco board when he sold a house in New Hampshire in 1996 to former CEO Dennis Kozlowski, who resigned earlier this month. An internal probe by Tyco is looking into whether the home was improperly purchased with corporate funds, the source told Reuters.
In addition, the conglomerate is looking into a second possible conflict of interest involving Fort, as well as one involving director Stephen Foss.
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