Lear to Cut Up to 7,700 Jobs Globally

Monday, June 27th 2005, 10:22 am

By: News On 6

SOUTHFIELD, Mich. (AP) _ Auto-parts supplier Lear Corp. is implementing a restructuring plan that could cut up to 7,700 jobs globally and move some North American and European manufacturing facilities to countries where labor is cheaper.

The 12-month plan will cost the company up to $250 million, with about $30 million of that cost incurred in the second quarter of 2005. Lear made the announcement Monday, saying five North American or European factories will be moved to cheaper sites and that some administrative functions will be affected. But it did not say which factories would be closed.

``It's still a strategy, a plan, at this point,'' spokesman Mel Stephens said. ``We have 300 facilities around the world, and it's kind of like a dominos game. If you decide to change one thing, others have to change too.''

The company is expected to give more information when it releases second-quarter earnings July 29.

The Fortune 500 company, which makes products for car interiors, is headquartered in the Detroit suburb of Southfield and employs about 110,000 people in 34 countries. It had $17 billion in sales in 2004. Stephens said 5 percent to 7 percent of the work force is expected to lose their jobs under the new plan.

``We are implementing this restructuring plan to improve our overall competitive position in light of extremely challenging industry conditions,'' Chairman and Chief Executive Bob Rossiter said.