Navistar layoffs: Navistar International Corp. plans to cut 500 jobs by the end of October after dismal numbers came of the third quarter report for 2013. Chicago Tribune reports September 4 that the truck and engine maker based in Lisle, Ill. suffered a loss of $247 million, or $3.06 per share.
The Navistar job cuts will consist of salaried employees and long-term contractor positions globally. This move is expected to save somewhere between $50 million and $60 million in fiscal 2014. Troy Clarke, Navistar’s President and Chief Executive, said the company still faces a few "significant challenges," but wants to "accelerate the progress" of profitability. Clarke said by 2014 he expects the company to be profitable again.
Navistar has cut hundreds of jobs nationwide. Layoffs began in September and will continue until the end of October. Workers were notified in August of the job cuts.
In addition to the Navistar layoffs, officials are considering a consolidation of its engine plants. The company builds diesel engines in Melrose Park, Ill. and in Huntsville, Ala.
"We have a handful of different alternatives that we can act on fairly quickly to consolidate our engine manufacturing into a fewer manufacturing facilities than we have today. We fully expect to be able to act on that in 2014," Clarke said in a conference call.
On Tuesday, Navistar announced its expanded partnership with Cummins Inc., by including their engines in their medium-duty trucks and school buses.
Daily Herald reports that the Navistar layoffs will most significantly impact workers in the North American locations, including the corporations' headquarters in Lisle where about 3,000 employees work. Navistar has 15,000 workers worldwide.
Wall Street Journal notes that Navistar International Corp. ranks fourth place in the "heavy-duty market behind Freightliner; Paccar Inc., maker of Peterbilt and Kenworth truck brands; and Sweden's Volvo AB."