How to survive in the globalized economy?
That is the question that the chief executive of a United Technologies Corp. subsidiary has pondered since he took over the company in January.
The executive has been asked to advise on how the company can adapt to the rapidly changing business climate.
And he has become a focal point of a broader discussion about the economic impact of technology on the economy.
United Technologies shares fell more than 8% to $62.78 in afternoon trading Thursday after the company said it was shutting down its new data center in Kentucky and laying off about 2,000 employees.
In a memo to employees Wednesday, CEO Joe McQuaid said the company would suspend operations in the coming weeks at its Indianapolis data center and shuttering its $9.3 billion facility in Lexington, Ky.
That means it will shut down the U.S. headquarters for the next five years.
McQuaid did not elaborate on the details of the decision to close the Kentucky facility, which is the site of an advanced manufacturing plant.
But in a memo posted on the company’s website, McQuare said he was removing U.T.s operations in Kentucky “in order to focus on the broader business strategy and strategic goals of the company.”
The move comes just weeks after U.A.E. announced a $3.6 billion merger with General Electric Co. and the company announced plans to cut nearly 10,000 jobs.
That comes just months after General Electric cut its workforce by about half to about 15,000 in the U-shape and has faced stiff competition from other American rivals in emerging markets such as China.
McQueaid’s move comes after several other U.TT companies in the past have announced layoffs in recent years.
The U.CTC announced in January that it would cut more than 3,000 workers.
In the second quarter, U.RT acquired a Canadian data-storage company that will now be based in Indiana.
Mcquaid is the latest CEO to face scrutiny for the impact of globalization on the UTT economy, which includes data centers and manufacturing.
In 2016, the Dow Jones Industrial Average fell nearly 600 points after a company that provides data processing and storage services for U.N. agencies in the Middle East announced plans for a $1 billion move to Ireland.
In 2015, the Nasdaq stock index plummeted more than 400 points after the UCTC cut more to relocate its data center.
In the global marketplace, the move comes as U.NTs manufacturing operations have been squeezed by the arrival of new rivals such as Amazon.com Inc. and Alibaba Group Holding Ltd.
The layoffs at U.C. Davis will allow the company to focus more on its core business of manufacturing and manufacturing services, which will help offset the impact that automation will have on its business, Mcquaid said in the memo.
The company has invested $100 million in a new data-processing center in Indianapolis, and U. CTC has pledged to invest $5.6 million to expand the facilities and hire 1,000 more employees, he said.
McQaid also said the UIT will begin a new program to invest in new technology.
The company said that the UETs new Advanced Manufacturing Technology and Data Center will provide “new and exciting opportunities” for UCTs business.
The U.TCs plans to close down the facility at UCT are not expected to have a significant impact on U. tech workers.
The average wage for a UCT employee was $43,500 last year, and the average wage in the region was $46,400, according to a study by the Center for Automotive Research.
The news came after the DowJones Industrial Average lost more than 1,400 points Thursday and the Nasec index closed down more than 2%, wiping out gains on Wall Street.