Fortune 500 auto parts supplier Lear looks to slash some 15,000 jobs this year globally.
Auto parts supplier Lear is looking to further reduce headcount this year to protect profits amid a continued decline in vehicle production in North America and Europe.
The Detroit-based company expects the number of hourly workers across its global operations to decline by roughly 8%, or some 15,000 jobs. By the end of 2025, that means a total of 25,000 to 30,000 employees will have left over the past two years, according to management.
“The restructuring investments we are making will drive an additional $55 million of savings in 2025,” CEO Ray Scott told investors during a fourth-quarter earnings call on Thursday.
Lear provides key components like luxury seats and wire harnesses needed for onboard electronics for EVs like the Cadillac Escalade iQL and Polestar 5, as well as numerous combustion-engine models.
But the company needs to downsize amid a broader shift in demand away from legacy carmakers towards Chinese domestic brands like BYD, Geely and now the newest entry, mobile handset maker Xiaomi, which launched its first electric vehicle last year in the stylish SU7.
Source: FORTUNE