Reports: Lisle-Based Navistar Set to Cut Another 200 Jobs

Navistar will see a total reduction of nearly 700 employees as it implements both layoffs and a voluntary separation program in the coming months.

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.

Maria September 06, 2012 at 08:42 PM
I can't wait to see the village wide letter from the Lisle Chamber of Commerce about how the loss of 1400 jobs will greatly impact us, what with "village funds depleting" and all. Maybe that "small group" knew about the layoff plans, huh?
Jane September 09, 2012 at 01:25 PM
That brings the total to about 1800 jobs cut since Sept 2010 as result of Navistar's Lisle consolidation - a project funded with: 1.) $225 M in federal recovery zone bonds (RZF bonds are supposed to be used to "create growth" & "create jobs"). Quick - someone call Romney's campaign so they can highlight Navistar as the poster child of Obama's recovery plan! 2.) $64 M EDGE tax deal from the State of IL that was approved to allow Navistar to cut 500 Illinois jobs! 3.) A $32 M TIF from the Village of IL which allows Navistar to cut even more jobs and still collect taxpayer money - that would have gone to schools, parks, library. In fact this company can cut 1700 IL jobs from the 3100 IL jobs that existed in 2010 down to 1400 and still collect Lisle TIF money! How many more US jobs will Navistar cut? I won't be surprised to see 1000 more US jobs will be eliminated by this company in the next 18 months.
Maria September 12, 2012 at 02:43 PM
Inching closer to bankruptcy? http://www.chicagotribune.com/business/columnists/ct-biz-0912-phil-20120912,0,1652120.column
Bill September 12, 2012 at 02:47 PM
+225 more jobs cut in Union City In. Plant Closing. These are hourly and/or union jobs and are in addition to the 700 salaried voluntary/involunary cuts. http://www.truckinginfo.com/news/news-detail.asp?news_id=77991&news_category_id=29
Bill October 24, 2012 at 10:58 PM
Bankruptcy next for NAV? http://www.forbes.com/sites/joannmuller/2012/10/24/ailing-truckmaker-navistar-has-a-bridge-to-sell-you/
George P October 25, 2012 at 03:00 PM
Navistar has been on the verge of bankruptcy for years. Over $ 4 Billion in debt obligations. Market cap now down to 1.25B. And strapped for CASH! My opinion, Ch 11 in Jan 2013 is a pretty good estimate of the situation. But I knew this 3 yrs ago when Nav was trying to convince DuPage & Lisle they were adding jobs and growing.
Dick October 25, 2012 at 10:10 PM
NAV bonds are now rated CCC- Everyone saw this coming except the Village of Lisle and the Chamber of Commerce. Next we'll be reading about the woes of UTI .. its coming. It takes some great leadership and vision to hand out millions in tax deals to desperate companies on the verge of bankruptcy feeding from the public trough. While simulataneouly, doing absolutely nothing for existing businesses.
Jane October 28, 2012 at 04:25 PM
UPDATE on Navistar Job Cuts. 800 Jobs cuts in Lisle + 1130 jobs cut in Fort Wayne = 1930 Jobs cut. http://www.journalgazette.net/article/20121028/BIZ/310289967/1031#
Maria October 28, 2012 at 04:35 PM
Navistar cut MORE US Jobs than predicted 18 months ago!! http://napervillesun.suntimes.com/business/3735121-420/navistar-disputes-groups-job-loss-claim.html
Dick October 28, 2012 at 04:48 PM
$170,000 in tax incentives to Navistar to pay for each US Job cut!! This type of corporate welfare must end!! Broda, Quinn, Obama... what are these guys thinking?!
Jane October 31, 2012 at 09:24 PM
1130 Jobs cut in Fort Wayne 800 Jobs cut in Lisle/Melrose Park 450 Jobs cut in Oregon 225 Jobs cut in Union City IN 900+ Jobs cut in Garland TX. Wow... that's 3500 jobs cut just in the past few months. How is this "economic stimulus and economic growth?" Why would taxpayers get stuck with the bill to subsidize a corporate downsizing?
Maria November 30, 2012 at 07:08 PM
Navistar axes more US jobs .. this new round is in Mississippi. More to come? http://www.wtva.com/news/local/story/Navistar-cuts-workers-at-West-Point-facility/AM0Eky96i0an2z6pxyj6qw.cspx


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