Federal-Mogul to Cut 4,000 Jobs

September 22, 2008
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 Wednesday, September 17.

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 sometime 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.

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.

Filed by Chrissie Thompson of Automotive News, a sister publication of Workforce Management. To comment, e-mail

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