Eaton Corp. (ETN) said Wednesday that it will cut another 5,200 staff through compulsory layoffs amid a continuing slowdown in the global manufacturing sector.

The U.S. diversified manufacturer cut 3,400 jobs last year and said in December that it would take further actions expected to generate pretax savings of $125 million by the end of 2009.

The announcement takes the cumulative cuts to 10% of its global work force after new layoff notices were sent Tuesday, spokeswoman Kelly Jasko said.

Further details such as the location of the cuts and any potential restructuring charges may be announced with fourth-quarter earnings Monday.

Eaton cut its guidance for the December quarter a second time last month, warning that its October prediction for flat growth in end markets was unlikely to be realized.

Eaton signaled that further actions on costs were likely early in 2009 amid a slowdown in customer activity that started in late November, focused in auto, truck and hydraulics operations. The company's electrical and aerospace units also felt pressure.

The company said last month that it expects operating earnings of $1 to $1.10 in the December quarter after cutting 70 cents from guidance revised in October.

The change implies full-year net profits of $6.75 to $6.85 before exceptional items, versus a mean earnings view among analysts of $6.83 a share.

Eaton shares rose 1% to $47.49 in early trading.

-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@dowjones.com

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