Kennametal announces 1,200 layoffs worldwide

Metal-cutting tool maker Kennametal Inc (KennamentalInc) announced last week that it would cut about 1,200 jobs worldwide and cut its second-quarter profit forecast. According to reports, Kennametal will cut 800 positions in the next 3 to 6 months, and another 400 positions will be cut in the next 6 to 9 months. The company expects the layoffs to save $100 million in pretax costs, while the pretax expense for the layoffs is expected to be around $90 million. Kennametal said it expects second-quarter earnings to fall by about 10% due to a decline in sales due to the global market recession.