Kennametal to cut 1,200 jobs in 2009
U.S. tool maker Kennametal Inc. said it would eliminate approximately 1,200 positions in 2009 as it revised its second fiscal quarter earnings estimate.
A global decline in industrial production, amplified by customers reducing their inventories has significantly decreased demand, the company said in a statement Monday.
The downsizing includes 800 salaried positions to be erased in the next three to six months, saving approximately $70 million in operating expenses, the company said.
Another reduction of another 400 positions, announced previously, would save $30 million, Kennametal said.
Sales in the fiscal quarter that ended Dec. 31 were down 10 percent, the company said.
We are implementing and accelerating restructuring in response to the current market challenges, said Chairman, President and Chief Executive Officer Carlos Cardoso.
While we will work to minimize the impact of these actions on our customers and employees, we will continue to monitor the economic environment and take further steps as warranted, he said.