NYSE-listed United Technologies has decided to lower its 2009 earnings outlook by about 13 percent and said it will reduce headcount by 11,600 workers as it no longer anticipates an economic recovery this year. The company has a wide range of products from elevators to jet engines

It may be noted that last year, UTC officials earlier predicted an economic recovery in the second half of 2009.

The company's latest layoffs will be primarily among administrative and sales staff, world-wide. At the end of 2008, the company employed 223,100 people world-wide.

According to a report, the latest move is expected to save the company about $1 billion this year.

In addition, the Hartford, Conn.-based conglomerate now looks for revenue of $55 billion this year, down from a prior forecast of about $57 billion.

The company expects to earn $4 to $4.50 per share in 2009, lower than the $4.65 to $5.15 it previously forecast. However, market analysts are looking for profit of $4.60 a share.

Further, United Technologies has also decided to cut its share-repurchase target for the year to $1 billion from $2 billion.

During early trading hours, shares of United Technologies climbed more than 6% to $39.98 each, in line with a rally in the wider market.