TROY, Mich. - ArvinMeritor has announced it is taking drastic action, including eliminating 1,250 positions or roughly 7% of its staff, in the face of "the current weakness in global business conditio...
TROY, Mich. –ArvinMeritor has announced it is taking drastic action, including eliminating 1,250 positions or roughly 7% of its staff, in the face of “the current weakness in global business conditions.”
“Swift and decisive actions are necessary in response to today’s global economic conditions, which include softness in all markets in which we participate, as well as weaker foreign currencies,” said Chip McClure, chairman, CEO and president of ArvinMeritor.
The staff cuts will include 450 salaried and 800 hourly positions, the company said.
The company is also revisiting its May 2008 decision to spin off its light-duty business unit to shareholders.
ArvinMeritor is now exploring other options, including selling the business, it said in a release.
“We believe the actions we are announcing today, as well as the progress we have made over the last several years to improve our cost structure solidly position our company to address the weakness we are seeing in the marketplace,” said McClure.
“I am confident that when the global economies and our industry stabilize we will be a stronger, more focused company.”
ArvinMeritor completed sweeping changes in its operations over the past four years as part of its Performance Plus cost-saving program.
The changes included the closure and/or consolidation of 17 manufacturing facilities and a reduction of its global workforce by about 4,000 positions. •
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