Pentair Inc says that it anticipates reducing its workforce by 1,600 – 10% of its total employee base – and closing fifteen facilities by the end of 2009.
“The speed and impact of sluggish demand in global markets and consumer spending has had a deeper impact on our orders and sales volumes than we previously expected,” said Randy Hogan, pentair chairman and CEO. “Given our experience dealing with difficult residential markets for two years now, we believe additional actions are necessary to ensure our operations are realistically preparing for challenging global industrial, commercial and residential markets in the coming periods.”
This follows the company’s reported fourth quarter sales of approximately US$770 million which were less than the anticipated US$840 million. This reduction is due to sharp volume declines in the company’s technical products business as well as some industrial, commercial and residential water businesses, the company said.