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.
Besides cutting its employee base by eight per cent, 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 US$60 million to US$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.