The Vickers hydraulic pump factory in Omaha, Nebraska is shedding almost 10% of its 870-strong workforce because of a drop in sales, particularly to the agricultural sector. The 50,000m² plant, thought to be the world`s largest hydraulic pump factory, was acquired by the Eaton Corporation in April when it bought Aeroquip-Vickers for $1.7bn (£1.06bn). Since then, Eaton has been reviewing the Vickers operation.

In its second-quarter report last month, Eaton forecast that the hydraulics industry would continue to be depressed, particularly for products used in farm equipment.

In May, Eaton announced its intention to sell Vickers Electronics Systems (VES) which specialises in motion control systems including software, motors and drives. VES has a manufacturing site in Bedford, UK, as well as two in the US and one in Italy. The company, which Aeroquip-Vickers bought from Cincinnati Milacron in 1995, has 800 employees and sales last year of $130m (£81m).

In a separate move, Eaton has sold its Fluid Power Division to Borg-Warner Automotive for $310m (£194m). The company, which makes viscous fan-drive cooling systems for the automotive industry, employs 1,050 people and had sales last year of some $190m (£119m).