UPDATED: 9/18/15 9:58 am ET - adds details
U.S. auto parts maker Johnson Controls Inc. said it would cut as many as 3,000 salaried jobs over the next two years as part of an ongoing cost savings program.
The company expects to save $250 million annually after it reduces its workforce by about 2.5 percent over two years, according to a statement released Friday.
A Johnson Controls spokesperson declined to provide more details about the cuts but said reductions would take place across all business functions and will not be limited to one location.
Johnson Controls, which has 130,000 employees worldwide, initiated a cost cutting program in July ahead of the spinoff of its $22 billion automotive interiors unit by 2016.
The business makes automotive seating, overhead systems, floor consoles, door panels and instrument panels.
The spinoff will allow the company to focus on its higher-margin building efficiency and automotive battery operations.
The building efficiency business makes heating, ventilating and air conditioning systems and had $14.16 billion in sales last year, while automotive batteries accounted for $6.63 billion of sales.
"As we continually adapt to our changing business portfolio, there is significant opportunity across the company for us to reduce costs, simplify processes and increase our speed and agility," CEO Alex Molinaroli said in the statement. "The steps we are taking now will enable a more competitive, sustainable cost structure for Johnson Controls as we continue to move the company forward."
David Phillips, Bloomberg and Reuters contributed to this report