LAKE FOREST, Ill. - Tenneco Automotive Inc. said it will fire as many as 405 salaried employees, or about 8 percent of its salaried work force, as a result of lower demand for the parts it produces.
The cuts will result in charges of as much as $14 million this year.
Tenneco, the biggest maker of automotive shock absorbers, will eliminate 215 jobs immediately, mostly in Monroe, Mich., and at its headquarters in Lake Forest, Ill., said spokeswoman Jane Ostrander. The reductions will save about $27 million annually, she said.
Tenneco Automotive ranked No. 37 on the Automotive News list of top 150 parts suppliers to North America with sales of $1.17 billion in 1999.
The cuts add to 700 salaried jobs that Tenneco said last October it planned to eliminate by the end of this year to save $45 million annually. About 4,955 of Tenneco's 23,000 employees are salaried. Tenneco said it earned about 5 cents to 10 cents a share in 2000, indicating a wider-than-forecast loss in the fourth quarter as parts demand fell.
'They're probably the most vulnerable of the companies to the weaker conditions, and that's showing today,' said Kevin Tynan, an analyst with Argus Research Corp. in New York.
Lower auto production and demand 'make it absolutely necessary to respond as quickly as possible by continuing to aggressively cut costs and reduce spending,' Tenneco Chairman Mark Frissora said.
Job cuts will also be made at Tenneco Automotive's engineering center in Grass Lake, Mich.; its replacement-parts sales group in Lake Forest; and in other countries.