Conglomerate United Technologies is breaking up. The 84-year-old company is spinning off its Carrier air conditioner and Otis elevator businesses in order to focus on aerospace. It’s the third conglomerate to split into smaller units recently.
United Technologies’ board had long believed they needed the steady revenue from humdrum products like air conditioners and elevators in order to finance the high-tech jet engines. But after studying the numbers, the board concluded aerospace can pay for itself. In an interview with CNBC, CEO Gregory Hayes said his main worry is growing the company while unemployment is so low.
“We’ve got 5,000 job openings right now, we’re trying to hiring 35,000 people in the next five years. It’s tough to do.”
United Technologies follows conglomerates like General Electric and Honeywell in seeking a break-up. Hayes said that today’s economy wants a management team focused on a single business.
