Editor's note: This story has been updated to correct the date of the second furlough week.
Automotive seating supplier Adient will furlough all of its corporate workforce in the U.S. during two holiday weeks.
The company confirmed to Crain's Detroit Business Friday that 1,300 non-plant, salaried employees will not work or receive pay for the weeks of Thanksgiving, Nov. 25-29, and New Year's, Dec. 30-Jan 3. Crain's Detroit is a sibling publication to Automotive News.
Mary Kay Dodero, director of communications for Adient, said in an email that the five-week UAW strike of General Motors is to blame.
"While globally Adient has a diversified customer mix, the unplanned loss of sales and profit caused by the GM strike is impacting Adient's Americas region," Dodero said in an email. "Adient decided to act proactively to offset this loss and ensure the company is well-positioned for the long term."
Adient was among suppliers who laid off at least some plant workers linked to the strike at GM, but would not confirm the number of workers affected.
Adient, which spun off from Johnson Controls Inc. in 2016, has had several rounds of layoffs over the past year. Most recently, Adient reported a net loss of $321 million on revenue of $4.2 billion during its fiscal third quarter, compared with net income of $54 million on revenue of $4.5 billion during the same quarter last year.
Adient attributed the reported loss to an approximately $250 million deferred tax assets impairment, an additional $50 million tax expense and $34 million in restructuring-related charges.
Last year, Adient suspended its dividend as it reported a fiscal fourth-quarter net loss of $1.35 billion. It has since focused on debt reduction and "financial flexibility."
Despite financial pressures and the strike's impact, Adient has been favored by Wall Street. Its shares have risen more than 49 percent this year to $24.46 as of the close of business Thursday. The stock was down 4.3 percent to $23.41 in early Friday trading.
Adient, of Plymouth, Mich., ranks No. 13 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $17.4 billion in 2018.