Economy Hammers CT Toolmaker

Stanley Works to Cut 2,000 jobs, Close 3 Plants

Even iron and steel cannot overcome the heavy blow of a bad economy.

The New Britain, Conn.-based toolmaker Stanley Works plans to cut 2,000 jobs, or about 10 percent of its work force, and close three manufacturing facilities.

The company is blaming weakness in the global economy and deteriorating construction and industrial business, along with a stronger U.S. dollar.

Stanley Works did not identify in the news release which of its 45 plants will be closed.

Three hundred fifty employees in New Britain are waiting to know if they will keep their jobs.

The company told the Connecticut ALF-CIO that the action will not affect the 150 workers at the Farmington plant but it would not comment on the New Britain facility.

A news release issued Thursday that most of cuts will take place in this month and will result a pretax charge of about $80 million, or 70 cents per share, in the fourth quarter.

The company hopes to save $115 million in 2009 as a result of the moves.

Does a stronger U.S. dollar in a weak economy not make sense? The Federal Reserve Bank of Chicago explains it.

Read the company’s release here.

Copyright AP - Associated Press
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