The restructuring follows a comprehensive analysis of the company`s cost structure. The changes are expected to cost around $50m and to generate savings of around $75m in 2009 and $85m in 2010.

The cutbacks follow two quarters in which the company reported drops in profits.

"Although fourth quarter revenue is in line with expectations," says Rockwell chairman and CEO, Keith Nosbusch (above), "we believe it is prudent to take steps to address our cost structure while continuing to invest to maintain our competitive differentiation and further strengthen our global presence."

The restructuring includes streamlining administrative and operations functions, realigning selling resources to the highest growth opportunities and consolidating business units. The job cutbacks, mainly in sales, general and administrative functions, have started already.

Nosbusch was reported recently as saying that Rockwell had been surprised by the speed of Europe’s economic downturn. "Europe is our greatest concern," he said. "What surprised us is how quickly it deteriorated." He cited Germany, Italy, France and Denmark as being markets of particular concern.