OTIS · 10-Q · 2026Q3 · Full report
Restructuring and Headcount
Otis Worldwide Corp · 2026-10-29 · Importance 46 · Surprise 42 · Contradicted
Other restructuring costs totaled $23 million for the nine months ended September 30, 2026, including $19 million for 2026 actions and $4 million for 2025 actions. UpLift restructuring actions generated about $103 million in annual recurring savings at the end of 2025, of which approximately $77 million was realized in the first nine months of 2026. Other 2026 and 2025 actions generated approximately $36 million of savings during the nine-month period; expected annual recurring savings are $21 million and $40 million, respectively. The China operations reorganization involved approximately $30 million of restructuring actions and was substantially completed by December 31, 2025.
Key facts
- Otis generally expects annual recurring savings from other restructuring actions within two years of initiation, including $21 million for 2026 actions and $40 million for 2025 actions; approximately 25% relates to cost of products and services sold and 75% to SG&A. source
- UpLift, announced in July 2023, had approximately $300 million in total transformation and other incremental costs to complete as of December 31, 2025, including $18 million of trailing restructuring costs expected in 2026; the Company had generated approximately $200 million in run-rate savings. source
- Otis's approved UpLift restructuring actions generated approximately $103 million in annual recurring savings at the end of 2025, of which approximately $77 million was realized in the nine months ended September 30, 2026, including $14 million of incremental savings versus the same 2025 period. source
- Otis said it may undertake further restructuring actions to keep its cost structure aligned with prevailing market conditions. source
- Otis recorded $23 million of other restructuring costs in the nine months ended September 30, 2026, including $19 million related to 2026 actions and $4 million related to 2025 actions. source
- Otis announced a reorganization of its China operations in January 2025, resulting in approximately $30 million of restructuring actions that were substantially completed by December 31, 2025. source
- Otis realized approximately $36 million of savings from its 2026 and 2025 other restructuring actions during the nine months ended September 30, 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +5.1% | UpLift, announced in July 2023, had approximately $300 million in total transformation and other incremental costs to complete as of… |
| operating_income | positive | probable | +0.5% | Otis generally expects annual recurring savings from other restructuring actions within two years of initiation, including $21 million for… |
| operating_income | positive | probable | +0.3% | Otis generally expects annual recurring savings from other restructuring actions within two years of initiation, including $21 million for… |
| operating_income | negative | probable | -0.2% | UpLift, announced in July 2023, had approximately $300 million in total transformation and other incremental costs to complete as of… |