9/23/2008
Federal-Mogul Announces Restructuring Plan; Eight Percent of Workforce to be Cut
Federal-Mogul has
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, which will take
place as a result of several streamlining initiatives, will include
consolidation or closure of selected locations, and reduction of
general and administrative staffing.
The company is not disclosing the specific sites at this time,
pending further evaluation and consultations with appropriate parties.
The company said restructuring initiatives will begin this month
and will 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,” said Jose Maria Alapont,
Federal-Mogul President and CEO. “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."
For more information about Federal-Mogul, go to: http://www.federalmogul.com.
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