Accuride President Resigns, Company Restructures
Accuride has announced the resignation of John Murphy as president and CEO and director of Accuride, effective 22 September 2008. Upon acceptance of Murphy’s resignation, Accuride’s board of directors appointed William (Bill) Lasky as interim president and CEO. At the same time, the wheel manufacturer also announced that it is embarking on restructuring programme that will eliminate a total of 392 positions, or 11 per cent the company’s workforce. This includes 159 salaried positions (18% of current level) and 233 hourly employees (9% of current total).
As a result of the restructuring programme, the Company expects to incur a one-time restructuring charge of approximately $14.3 million in the third quarter of 2008 of which a total of $10 million will impact cash during 2008 and 2009. However, the company expects that the restructuring will save an estimated $6 million in 2008 and generate annual cost savings of approximately $27.5 million thereafter.