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Jobs cut at Tyco�s White City plant Mail Tribune / Bob Pennell About 60 of 450 workers were laid off at Tyco International�s printed circuit board plant in White City. Company officials said the job cuts were needed after recent acquisitions. Printed circuit group does restructuring By SHARI DOWNHILL Tyco�s White City printed circuit board plant laid off about 60 of its 450 workers Friday, citing recent acquisitions and the conglomerate�s need to consolidate its work force. Jobs were reportedly cut from all three of the company�s work shifts, with manufacturing workers primarily affected. Tyco Printed Circuit Group, a wholly-owned subsidiary of publicly held Tyco International Ltd. based in Bermuda, purchased Tualatin-based Praegitzer Industries in October 1999 for $72 million cash. Praegitzer�s White City plant was one of four manufacturing plants included in the deal. White City plant management declined to comment on Friday�s layoffs. Workers released last week had only been employed with the company an average of one year, said Tyco spokeswoman Maryanne Kane. The elimination of worker positions, she said, was related to Tyco�s recent acquisitions, including AQC in Florida and a division of Raytheon in Austin. Tyco�s Printed Circuit Group is comprised of 17 facilities, Kane said. "Having just completed an operational review of the integration of recent acquisitions, the management of the Tyco Printed Circuit Group has announced a targeted restructuring program for the White City, Oregon, facility," Kane said in a written statement. "The decision has been necessitated by the need to eliminate certain positions so that (Tyco) can operate more efficiently and better meet customer needs. It in no way reflects the quality of the workers affected." The plant reportedly cut back hours for an undisclosed number of full-time workers last month, and laid off approximately 60 manufacturing employees Friday without warning. Tyco produces printed circuit boards for manufacturers such as Motorola, Compaq, Intel and Lucent. Tyco International Ltd. is the world�s largest manufacturer and servicer of electrical and electronic components. The company declared a regular quarterly cash dividend of one and one quarter cents per common share for the first quarter 2001. Oregon Employment Department figures show a steady increase in the number of Jackson County residents employed in electronics and electronic equipment manufacturing jobs since 1979. The industry accounted for $22.9 million in worker payroll in 1999. Controversy over Tyco�s acquisition-related accounting practices ignited at the same time the company bought Praegitzer, with the release of a critical report by a Dallas money-management firm, David W. Tice Associates. Tyco�s stock fell sharply after that report, and again in December 1999 when the Securities and Exchange Commission launched an informal inquiry into Tyco�s accounting practices. In 1999, Tyco did more than $14 billion worth of deals, including the $72 million cash buyout of Praegitzer�s four manufacturing plants. The main criticism was that companies that had agreed to be acquired by Tyco took substantial charges just before they were incorporated into Tyco�s portfolio. The report claimed those moves allowed Tyco to show higher profits and growth rates in later quarters than it otherwise would have. Praegitzer Industries was one of 120 companies Tyco reportedly purchased between 1994 and 1999 for about $30 billion. Praegitzer was founded in 1981 by timber magnate Robert Praegitzer. The company had acquired the White City plant from Northwest Printed Circuits in 1990. Reach reporter Shari Downhill at 776-4463, or e-mail [email protected] . Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.