Illinois Manufacturing Jobs Cut by Tenneco
Posted on October 29, 2008
One of the world’s largest makers of automobile exhaust systems is cutting Illinois manufacturing jobs.
Tenneco Inc. has announced its plans to cut 1,100 jobs and close four North American plants and an engineering center in Australia to reduce costs. The moves are expected to save about $64 million annually per year, according to an article by Bloomberg. This announcement comes despite a state plan to increase manufacturing jobs.
The company plans to have charges of as much as $60 million, $25 million of which will be posted this quarter. Tenneco said it eliminated 760 jobs in North America and 365 in Europe earlier this year, as jobs in the state as a whole have been declining.
“We expect every major manufacturer to post meaningful year-on-year decreases in sales,” Brian Johnson, a Chicago-based analyst with Barclays Capital, said in the article.
The 1,100 jobs to be cut make up about 5.2 percent of Tenneco’s 21,000 employees. Tenneco will close plants in Milan, Ohio; Evansville, Indiana; and two unnamed North American locations. The engineering facility is in Dunsborough, Australia.
“The current global economic crisis and dramatically falling consumer demand for vehicles around the world are accelerating a downward shift in build rates,” Chief Executive Officer Gregg Sherrill added.
Tenneco shares recently fell 24 cents, or 7.8 percent, to $2.85 in New York Stock Exchange composite trading. The stock dropped 88 percent this year before today.