Tenneco Automotive Inc. plans to cut up to 250 salaried jobs as part of a global restructuring program aimed at improving efficiency and lowering costs by up to $20 million annually.
In addition, Tenneco said it will reduce its business units to six from eight. The company is a global manufacturer and marketer of ride control, emission control and elastomer products and systems.
A complete breakdown of which divisions are involved under the cost reduction plan wasn't available, according to a company spokeswoman, but the cuts comprise mostly employees at middle and senior management levels. The reductions, which amount to about 6 percent of the company's salaried work force, will be made gradually and should be completed by the end of the first quarter of 2005, she said.
Lake Forrest-based Tenneco will take a charge of $20 million to $24 million over the next two quarters related to the move, which the firm expects will save it about $20 million annually. Tenneco reported sales of $3.77 billion last year-including about $215 million in elastomer-related revenue-and employs about 19,200 globally.
Market conditions remain volatile, Chairman and CEO Mark P. Frissora said. The decision to trim the work force will help the firm attain success with a lower cost structure and more efficient operations, he said. The company's aim is to trim selling, general, administration and engineering costs and improve Tenneco's gross margin performance.
As part of the restructuring, Tenneco's Australia/New Zealand operations will move into a new Asia-Pacific unit while the firm's South American operations will be part of the European unit.
The Asia-Pacific division includes the firm's operations in China, Japan, India, Thailand and Singapore, along with its Japanese original equipment business.