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58 years of independence After 58 years as an independent operator, AMP, the world's largest maker of electrical connectors, terminals, and circuit boards, is now just another cog in a bigger corporate wheel. In 1999, the Bermuda-based conglomerate Tyco International purchased AMP (which rhymes with "ramp") for $12 billion. Founded in 1941 by U.A. Whitaker, AMP originally manufactured parts for planes, boats, and radios, making a fortune in the industrial bonanza provided by World War II. When the war ended, AMP found a niche as a producer of electrical connectors and parts. Today, AMP makes devices used in a wide variety of consumer and professional electronics products, including crucial components of mechanical diagnostic equipment, aircraft control systems, and sonograms. Ending a bitter battle Tyco International's purchase of AMP ended a bitter takeover attempt by AlliedSignal, a New Jersey maker of aeronautics components, plastics, and car parts. But the takeover battle merely marked the conclusion of a downward spin for AMP, which had struggled for the past several years with overseas economic turmoil, inefficient production, and moribund management. Sure, blame the Japanese AMP's problems began several years ago. In an effort to enter the more profitable wireless and data communications business, AMP began buying up technology companies. But while the company grew, its costs increased as well. The company ended up with a bloated work force and redundant production plants. And while other companies began moving factories overseas or combining facilities, AMP stayed put. By the summer of 1998, when quarterly earnings had dropped 50 percent, company executives freed themselves of guilt by blaming the struggling Japanese and European economies. Trimming down the fat AlliedSignal began its takeover fight in August 1998, when AMP stock was trading at a 12-year low. But AMP, which had just announced plant closing and some layoffs, found AlliedSignal's $9.8 billion purchase offer too low. So when Tyco entered with a $12.22 billion offer, a beleaguered AMP accepted. As part of the Tyco buyout, AMP cut its 48,000-person workforce by 8,000 - half of which were overseas jobs. The company also reorganized itself into different business units with integrated manufacturing, sales, and engineering functions. An AMP warehouse and two manufacturing plants were also closed to help up its production efficiency. Switching gears Months have passed, and tensions from the merger have subsided. The general pessimism that flooded the firm after the huge number of cutbacks, has also gone. With its recent increases in demand, AMP has once again started to hire new workers. Tyco employee Tina Benner stated, "I think the morale is better than it was before the layoffs...I think it's the normal AMP now." Also, with help from the Tyco merger, AMP is now the leader in the fiber-optic technology market; it was previously tied with Lucent Technologies. AMP has also developed a few new products which Ken Fleck, CEO of Fleck Research says, "are being positioned for very high growth in the years ahead."
AMP's employment Web page, http://www.amp.com/jobs/employment.html, lists current job openings, most of which are in technical fields. The company has locations throughout the world, but the majority of U.S. positions begin in Harrisburg, PA, home to the company headquarters. But be forwarned: a company that loses a sixth of its workforce all at once might not be the best place to cold-call looking for a job.
Not a good time to see a company at its best The corporate buyout of a struggling, mismanaged firm is never a pretty sight; and the scene in Harrisburg, Pennsylvania was no exception. "We are closing some plants and laying off some people to regain our competitive position as number one in electronics - not generally a good time to see any company at its best," says one employee. In the dark The buyout has also created a degree of uncertainty among the "AMPutees," as they call themselves. "Loss of independence likely will greatly change the corporate culture, but how remains to be seen," says one. "People are for the most part in the dark as to what they may be doing in the near future," says another. "The company is reviewing almost every aspect of AMP at this time." No more rosy pictures Others are more pessimistic in their view. "I don't think you want to work here right now," says an insider. "The company is in turmoil primarily due to a less-than-stellar 1998. A few years ago, I might have painted quite a rosy picture."
Human Resources
Cable and cabling systems;Circuit Boards;Fiber optic connectors and assemblies;LAN and WAN products and systems;Sensors;Terminals
Amphenol More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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