Visteon has announced a further 400 firings as part of its restructuring process.
To reduce research and development costs, about 400 engineers worldwide will be sacked, the company said yesterday.
Visteon recently announced it would sell its restraint electronics business, leading to the shutdown of a Markham, Ontario, factory by the end of the year.
Approximately 250 employees from Markham and 100 engineers from Dearborn, Michigan, will be transferred to new owner Autoliv but the remaining 825 workers at Markham will be fired as the company exports the jobs to cheap-labour factories in Mexico.
“These initiatives are a continuation of Visteon’s actions to lower break-even to be profitable even in downturn conditions,” said Visteon chairman and CEO Peter Pestillo. “As with our other restructuring actions, these fit our long-term strategy and have a solid payback.”
In total, the restructuring will result in the sacking of about 900 hourly and 700 salaried workers.
Visteon expects the latest firings will result in a first
quarter 2002 non-recurring net charge of as much as $150 million before taxes ($95 million after taxes) with payback in a little more than two years.