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American Axle expects to cut 2,000 factory jobs
posted 12:03 pm Wed May 28, 2008 - DETROIT
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American Axle and Manufacturing Holdings Inc. says it will cut its U.S. hourly work force by 2,000 as a result of a new contract ratified last week by the United Auto Workers union.The auto parts maker said Wednesday its total hourly labor costs would drop to between $30 and $45 from $73.48 before the new contract. It hopes to reduce its work force with buyouts and early retirement offers. The contract agreement came after a nearly three-month strike. American Axle began bringing its factories back on line this week.
Chief Financial Officer Mike Simonte says the strike will cost the company $125 million to $130 million in lost profits this year.
Chief Financial Officer Mike Simonte says the strike will cost the company $125 million to $130 million in lost profits this year.
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