Federal-Mogul to reduce workforce by 10% as part of three-year restructuring plan

By Caroline Salls

Pittsburgh, Jan. 6 - Federal-Mogul Corp. expects to reduce its workforce by 10% by December 2008 as part of a $125 million to $150 million three-year restructuring plan that could affect about 25 Federal-Mogul facilities, according to a company news release.

Details of the plan have not been finalized. The plan's costs are based on preliminary estimates, the release said.

The plan is part of the company's global profitable growth strategy designed to satisfy customer and market expectations while improving corporate performance and expanding in key growth markets.

Federal-Mogul said it expects charges for costs and expenses related to the restructuring plan in the current quarter and future periods.

Restructuring costs are expected to include severance costs, retention costs, benefits costs and impairment of the facilities and equipment involved.

"Our focus for the future will be on improving our performance in mature markets and expanding in key growth markets to be better positioned to serve our customers with our leading technology and world-class portfolio of quality products and services," chairman, president and chief executive officer Jose Maria Alapont said in the release.

"While these decisions are difficult, our drive for global, profitable growth is dependent on implementing strategies that continue to strengthen our competitiveness and profitability in this market environment.

"We are pleased with the progress in our emergence proceedings and implementation of our global profitable growth strategy as we continue to develop best cost manufacturing, service and engineering operations."

Federal-Mogul, a Southfield, Mich.-based auto parts manufacturer, filed for bankruptcy on Oct. 1, 2001 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 01-10578.

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