Navistar International Corp. is planning layoffs of 200 salaried employees, according to a Chicago Tribune report.
In reporting a drop in third quarter profits Thursday, the company announced it is implementing both a voluntary separation program and additional involuntary layoffs.
With an undisclosed number of cuts planned for its Lisle workforce, Navistar says it will soon see 500 voluntary separations in addition to the 200 layoffs, which are expected to be made in the fourth quarter, according to the Daily Herald. All told, the company will see a total loss of nearly 700 employees.
The company expects the move to result in between $70 million and $80 million in annual savings, according to a news release. Overall, the company aims to reduce costs by as much as $175 million year-over-year beginning in the 2013 fiscal year, the release said.
"Navistar is a great company with great people and great brands," Navistar Chairman and CEO Lewis B. Campbell said in Thursday's release. "With a laser focus on getting our quality right and hitting our clean engine launch dates, combined with actions to maximize cash flow and improve our balance sheet, I believe we can accelerate the pace of progress to deliver significant improvements during the next 12 to 18 months."
In June, after reporting second quarter losses. Shares for the company fell the most they had in three years around that time period, and the corporation announced changes to its upper management.
Despite the recent cuts in some sectors of its business, Navistar had posted as recently as last week.