Delphi Automotive to Cut More Jobs in 4Q

Vehicle parts maker Delphi Automotive Systems said Monday that due to an expected slowdown in vehicle sales next year, it will cut 1,400 to 1,825 jobs during the fourth quarter, in addition to the 11,500 it previously announced as part of a restructuring program.

The Troy, Mich.-based company also said it expects profits in 2002 to be $275 million, up from a forecast of $220 million to $225 million in 2001. However, these figures exclude charges of $100 million to $150 million in 2002 and $404 million in 2001, related to the restructuring plan.

Next year’s global sales will likely be $25.5 billion, down from its $26.1 billion outlook for 2001, the company said in a release.

Delphi said the additional job cuts will be carried out mostly through voluntary retirement and buyouts. They represent less than 1% of the company’s 198,000 global workforce, Bloomberg reported.

The company announced its restructuring program in March, which called for the closure of nine plants and the consolidation of nearly 40 others. During this process, Delphi said it would cut 11,500 positions.

"We are on track to complete these actions by the end of the first quarter of 2002. Through the third quarter, we have closed seven of the nine plants and we have reduced the workforce by 8,500 positions, the majority through mutual separation programs," said Alan Dawes, chief financial officer.

Delphi also said that it is also considering selling or shutting some businesses, including its instrument cluster and sensor unit and its Harrison Thermal Systems division, Bloomberg reported. The two units employ 12,130 in the United States, Mexico, Europe, South America and Asia, bringing in a total of $3.9 billion in annual revenue.

(Click here for the full press release.)

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