Federal-Mogul Downsizes An Additional 10%
Dec 22, 2008 5:42 PM
Federal-Mogul Corporation announced it has expanded its existing restructuring plan announced September 17, 2008, in response to the continued challenging conditions in the global market.
Federal-Mogul plans to implement several initiatives designed to further consolidate, downsize or close additional locations. These actions are expected to reduce the company's global workforce by approximately 4,600 additional positions or about 10 percent.
The company is not disclosing the specific sites at this time, pending further evaluation and consultations with appropriate parties. The additional restructuring actions will begin during the first quarter of 2009.
Preliminary cost estimates for the additional restructuring are approximately $80 million through the end of 2009, and are in addition to expense estimates included in the original plan announced in September 2008.
"We continue to take actions in response to the ongoing significant downturn in regional markets and global industry outlook. These measures are required to prepare the company for the unprecedented challenges in the automotive industry," said Jose Maria Alapont, Federal-Mogul President and CEO.
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