Delphi to Cut up to 6000 Jobs

Delphi, the world’s largest automotive supplier, is to cut up to 6000 US jobs by the end of year. Although job cuts have been previously annouced a recent factory closure means the total could grow to alomst 1000 more than originally planned. Delphi’s recent decision to close its Flint, Michigan factory will make up the majority of the new job losses. Delphi said it had ceased production at its Flint West facility and, as of last week, all 450 remaining workers had chosen options such as retirement or transfer to other jobs.

The consolidation supports a “critical cost reduction portion” of the restructuring programme announced in October 2003, chief financial officer, Alan Dawes, said. At the time, Delphi said it expected to eliminate up to 5,000 jobs held by hourly union members in the United States by the end of 2004. By 30 June the company had already reduced the target staffing area by 4925.

“While growth remains the leading part of our strategy, we’re also challenged to reduce our legacy-cost structure, and we’re on track to do so as we make our US operations more competitive,” Mr Dawes said.

Automotive suppliers are coming under renewed pressure from car manufacturer to lower prices in the ultra-competitive marketplace. According to Delphi, the Flint West closing was the largest of the four planned US consolidations this year.

Delphi will eventually close operations in Anahiem, California, Olathe, Kansas and Tuscaloosa, Alabama and has already shut five other non-US facilities this year, said Delphi spokesman, David Bodkin