17th
September 2008 - Federal-Mogul
to Cut 4,000 Jobs, 8% of Workforce
Streamlining Operations, Adjusting to Industry Outlook
Federal-Mogul Corporation today announced a restructuring plan designed
to improve operating performance and respond to increasingly challenging
conditions in the global automotive market. The plan, when combined with
other workforce adjustments, is expected to reduce the company's global
workforce by approximately 4,000 positions or eight percent. The planned
actions are expected to occur as a result of several initiatives
designed to streamline business processes, consolidate or close selected
locations, and reduce general and administrative staffing. The company
is not disclosing the specific sites at this time, pending further
evaluation and consultations with appropriate parties. The restructuring
initiatives will begin during September 2008 and continue into 2009 with
several phases of implementation. Preliminary cost estimates of the
restructuring program are in the range of $60-$80 million through the
end of 2009.
"We are
taking actions in response to a downturn in regional markets and global
industry outlook. We recognize this is a difficult decision, yet these
measures are required to prepare the company for the increasingly
challenging automotive environment. The efficiencies gained as a result
of these initiatives will strengthen Federal-Mogul's competitive
position and help assure the company's future as we continue to
implement our sustainable global profitable growth strategy," said Jose
Maria Alapont, Federal-Mogul President and CEO.
About
Federal-Mogul
Federal-Mogul Corporation is a leading global supplier of powertrain and
safety technologies, serving the world's foremost original equipment
manufacturers of automotive, light commercial, heavy-duty and
off-highway vehicles, as well as in power generation, aerospace, marine,
rail, industrial, and the worldwide aftermarket. The company's leading
technology and innovation, lean manufacturing expertise, as well as
marketing and distribution deliver world-class products, brands and
services with quality excellence at a competitive cost. Federal-Mogul is
focused on its sustainable global profitable growth strategy, creating
value and satisfaction for its customers, shareholders and employees.
Federal-Mogul was founded in Detroit in 1899. The company is
headquartered in Southfield,
Michigan, and employs approximately 50,000 people in 35 countries.
Source:
Federal-Mogul Corporation Press Release