Teledyne Cuts Staff by 1,200 in Restructure

Teledyne said Thursday it is laying off 1,200 employees--including 500 in Southern California--in its latest effort to streamline operations and cut costs.

Separately, Teledyne, which has been plagued by legal problems over the last two years, said it won a victory in Rochester, N.Y., when a federal judge slashed a jury’s $107.3-million penalty against it to $1.1 million.

The jury had ordered Teledyne to pay the initial sum--considered the largest product liability award in aviation history--for producing an allegedly defective aircraft engine that contributed to a 1986 crash that killed a family of four.

Teledyne’s layoffs--representing about 5% of its work force--will occur as the aerospace, industrial and consumer products concern reduces its number of operating divisions to 21 from the current 65.

The job cuts are being made in the company’s management and support ranks. But Teledyne spokeswoman Rosanne O’Brien said the locations of the layoffs were not yet available. The company has operations across Southern California, including San Diego and the San Fernando Valley.

Teledyne, which makes aviation electronics, specialty metals, turbine engines and consumer goods such as Water Pik toothbrushes, said the cuts will save the company about $70 million a year.

Although Los Angeles-based Teledyne derives about 35% of its revenue from defense, the company said the moves are not tied directly to the slowing Pentagon spending but rather are aimed at improving delivery of its products to all its markets.

The cutbacks were announced as Teledyne reported that its second-quarter profit rose 10% from a year earlier, to $8.1 million, despite a 16% drop in revenue to $624 million.

However, the year-earlier earnings had included an after-tax charge of $12 million related to serious problems at the company’s Teledyne Relays unit.