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DETROIT, Mich. — Car-parts maker Delphi Automotive Systems is cutting 11,500 jobs as part of a massive plan to absorb the slowdown by the major automakers.

In addition to cutting the 11,500 staff, or five per cent of its workforce, Delphi also plans to sell, close or consolidate nine plants and cut staff at more than 40 other sites.

Delphi expects to eliminate those jobs through early retirements, layoffs and attrition.

The cuts will trim its operations by US$900 million.

“The actions outlined today should improve our ability to rebound decisively in more favourable automotive market conditions,” Alan Dawes, Delphi’s executive vice-president and chief financial officer, explains.

Delphi said that given weaker-than-expected orders from automakers and for replacement parts, it expects first-quarter revenue of $6.4 billion to $6.5 billion US, or $100 million to $150 million less than what had been forecast in January.

Delphi temporarily laid off more than 3,900 hourly workers in seven states this week as it continued adjusting to slowed production in the U.S. The previous week about 4,000 employees were idled.

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