Federal-Mogul Corp., a U.S. supplier that draws more than half its sales from Europe, cut 2,500 jobs in the first quarter as its net loss tripled.
The company posted a $101 million loss compared with a net loss of $31 million in the same period last year. Revenue fell 33 percent to $1.24 billion.
First quarter revenue for the powertrain and safety components maker dropped 33 percent from a year ago as car and truck production dropped 56 percent in the United States and 41 percent in Europe.
Federal-Mogul also logged $38 million in restructuring charges on the elimination of 2,500 jobs and two U.S. plant closures in the quarter. More cuts are likely as the company expects to gain additional momentum with this strategy in subsequent quarters.
The cuts were part of plans announced in December to shed about 4,600 jobs in 2009, on top of roughly 4,000 job cuts the company announced in September.
About 40,000 workers were employed by the supplier at the end of the first quarter, down 20 percent from the first quarter of 2008.
Federal-Mogul ranks 41st in the Automotive News Europe list of the top 100 global original-equipment automotive parts suppliers based on 2007 sales of $4,23 billion. Europe accounted for 61 percent of the company's total sales.