Company calls off talks after because it believes the regulatory obstacles were too high to make a deal happen.
Reorganization comes after sales at Otis fell 7.5% in the first six months of the year.
Government accuses subsidiaries of adding profit and overhead costs to the price of spare parts.
Fred Cromer was most recently president of International Lease Finance Corp., a buyer of commercial aircraft.
Will be replaced by former United Technology CEO, Alain Bellemare, effective Feb. 13.
Defence contractor says that number will likely increase as shutdown continues.