Magna announces new layoffs at DeWitt plant
By: Eric Reinhardt
09/12/08 01:38 PM
DeWITT - Magna Powertrain will slash another 100 jobs from its New Process Gear plant as of Sept. 22, the company said today.
The cuts are a response to problems affecting the entire automotive industry, according to Magna. The manufacturer also plans a one-week layoff of about 150 employees beginning Monday Sept. 15.
The layoffs are part of previously announced work-force reductions due to market conditions that have cut the plant's production volumes by more than half in less than a year, the company said in its statement.
The leadership of United Auto Workers (UAW) Local 624 is holding informational meetings with employees today to discuss a proposed labor agreement that is subject to membership ratification, the company added.
The UAW has previously said it would do everything it can to keep the plant open.
Magna cut 250 jobs at the facility on July 2, saying the reductions reflected a sharp rise in fuel prices, the downturn in U.S. demand for full-size trucks and sport-utility vehicles, and a corresponding reduction in customer production volumes.
During the company's earnings conference call on Aug. 6, Magna CFO Vincent Galifi noted the facility could be shut down if it doesn't start making money.
Magna's profit dropped more than 13 percent in the second quarter. The company earned $227 million, or $1.98 per share, in the period, compared to $262 million, or $2.35 per share, in the second quarter of 2007.
Magna International (NYSE: MGA) is a global auto-parts manufacturer. It owns Michigan-based Magna Powertrain, which operates the New Process Gear plant.
The plant employed about 2,000 people after the July layoffs. The layoffs this month will reduce the work force to about 1,900 employees.
Contact Reinhardt at ereinhardt@cnybj.com
09/12/08 01:38 PM
DeWITT - Magna Powertrain will slash another 100 jobs from its New Process Gear plant as of Sept. 22, the company said today.
The cuts are a response to problems affecting the entire automotive industry, according to Magna. The manufacturer also plans a one-week layoff of about 150 employees beginning Monday Sept. 15.
The layoffs are part of previously announced work-force reductions due to market conditions that have cut the plant's production volumes by more than half in less than a year, the company said in its statement.
The leadership of United Auto Workers (UAW) Local 624 is holding informational meetings with employees today to discuss a proposed labor agreement that is subject to membership ratification, the company added.
The UAW has previously said it would do everything it can to keep the plant open.
Magna cut 250 jobs at the facility on July 2, saying the reductions reflected a sharp rise in fuel prices, the downturn in U.S. demand for full-size trucks and sport-utility vehicles, and a corresponding reduction in customer production volumes.
During the company's earnings conference call on Aug. 6, Magna CFO Vincent Galifi noted the facility could be shut down if it doesn't start making money.
Magna's profit dropped more than 13 percent in the second quarter. The company earned $227 million, or $1.98 per share, in the period, compared to $262 million, or $2.35 per share, in the second quarter of 2007.
Magna International (NYSE: MGA) is a global auto-parts manufacturer. It owns Michigan-based Magna Powertrain, which operates the New Process Gear plant.
The plant employed about 2,000 people after the July layoffs. The layoffs this month will reduce the work force to about 1,900 employees.
Contact Reinhardt at ereinhardt@cnybj.com
Labels: layoffs, Magna International, New York
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