Worthington Industries to cut another 300 jobs, on top of 300 announced in October
December 5, 2008
NEW YORK - Metal work company Worthington Industries Inc. said on Friday it would cut more than 300 jobs, in addition to 300 cuts it announced in October.
Worthington said it would eliminate the jobs in its steel processing and metal framing segments, about 4 percent of its total work force.
The company said its Dietrich Metal Framing business "continues to be heavily impacted by the steep drop off in construction" and, along with steel processing, "has seen a dramatic decline in pricing and demand."
Dietrich will close its facility in Lunenburg, Mass., by Feb. 28, and suspend operations at a facility in Phoenix by the end of January and one in Miami by the end of February. It said it intends to reopen them if business returns.
Worthington also said it would ask the remaining employees to work shorter schedules and take unpaid time off. The company estimated that the job cuts and plant closings would save it about $17 million a year, with about $5 million in restructuring charges for severance costs and asset write-downs. It also expects to save money through smaller bonuses and profit-sharing.
On Oct. 23, the company said it would cut 300 jobs from its work force of 8,000 through layoffs and plant closings in Louisville, Ky.; Renton, Wash.; and elsewhere. About 150 of those earlier job losses also came from Dietrich. The earlier job cuts were expected to save the company about $13 million a year.
Worthington shares closed down 16 cents at $12.45 on Friday.
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