Wabash to Cut 900 Jobs; Close Plants

Truck trailer manufacturer Wabash National Corp. said Thursday it will cut its workforce by 18% and close two assembly plants and a distribution center.

The Lafayette, Ind.-based company makes truck trailers under the Wabash and Fruehauf nameplates, and said this action is necessary because poor market conditions show no signs of improvement. Last month, the company warned of coming job reductions.

About 900 jobs will be lost in Iowa, Tennessee and California, resulting in a $40 million pre-tax charge in the third quarter.

By the end of the year, the company will slash its used trailer inventories in half, to $50 million.

Wabash also named Arthur Brown as the new chief operating officer, and said it hired a search firm to assist in finding a new chief executive officer. Richard Dessimoz is currently serving as the company's acting CEO.

Last month, Wabash reported a net loss of $10.8 million for the second quarter, compared with a net income of $7.5 million in the same period last year.

(Click here for the full press release.)

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