Federal-Mogul to cut 4,000 jobs

[DainBramaged]

Federal-Mogul Corp. plans to lay off 4,000 employees as part of a restructuring plan to address the grim auto industry outlook, the supplier announced today.

Besides cutting its employee base 8 percent, Federal-Mogul plans to consolidate or close plants. Executives say they will announce which plants will see job cuts after further evaluation.

It was unclear how the cuts would be distributed among salaried and hourly employees. The company will choose which hourly or salaried jobs to eliminate "in response to market-based downturns," a spokeswoman said in an e-mail.

The restructuring will last until some time next year and will cost $60 million to $80 million, the supplier said. The company will record the expense on a quarter-by-quarter basis.

Federal-Mogul emerged from more than six years of Chapter 11 bankruptcy protection at the end of 2007. The company makes a variety of original-equipment and aftermarket auto parts, including pistons, rings, cylinder liners, spark plugs, bearings, seals and friction materials.

Federal-Mogul, of suburban Detroit, ranks No. 41 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $4.24 billion in fiscal 2007.

http://www.autonews.com/apps/pbcs.dll/article?AID=/20080917/ANA02/809179991/1128


Yup, the economy is structurally sound, hey Gramps.

[napi21]

1. I'm sorry to hear that. I suspect added to THAT bad news will be

a LARGE NUMBER of people who will lose their jobs in the financial sector. There were some really BIG players who went down in the last few days! I haven't heard a word about people celaning out their desks, but I know there had to be LOTS OD THEM!

[Indiana_Dem]

2. Yikes! That is a large employer here in my small town in Logansport, IN.

I couldn't get access to the article without a password and username. Did it mention anything about Logansport?

[DainBramaged]

3. I repost these articles in total, since I pay for the subscription

it is the automaker 'insider' daily. It costs about $150 a year and is worth every penny. For me at least.