Report: Navistar Looks at Layoffs to Cut Costs
Navistar International Corp. told employees last week that voluntary departures and involuntary layoffs are among the options it’s considering as the company looks to cut costs.
“There is a series of things the company is going to look at quickly, and job reductions will be the last lever,” company spokeswoman Karen Denning told Crain’s Chicago Business. “As a final action there could be layoffs.”
In the past, Navistar has received millions in tax credits tied to jobs and keeping its headquarters in Illinois. Navistar is parent to Monaco RV LLC.
“We believe we still will be meeting and exceeding our commitments for those state and local incentives,” Denning said.
Navistar announced a voluntary-separation program that any salaried full-time employee is eligible to take, she said. She declined to provide details.
Navistar has 3,400 such employees in Lisle, Joliet and Melrose Park, according to the most recent figure the company provided to the state. Hourly and production workers are not eligible for the program.
The struggling Lisle-based truck and engine maker announced the possibility of job reductions in an internal memo last week, Denning confirmed.