By Kirk Johannesen, The Republic
johannesen@therepublic.com
Baldor Electric Co. plans to leave 900 jobs unfilled as employees leave its 28 plants worldwide in the next six months.
Baldor employs 8,300 at its facilities around the world, including 185 at Columbus' 10th Street plant, the former Rockwell Automation Reliance Electric Co.
Tracy Long, vice president of investor relations, described the Fort Smith, Ark-based company's actions as "managing headcount," not cutting jobs. The company hopes to save about $30 million through the action.
She said as employees leave through retirement or taking other jobs, the positions will remain unfilled.
A reduction of 900 equals an average of 32 fewer workers at each plant.
Baldor manufactures, designs and markets industrial electric motors, mechanical power transmission products, drives and generators.
Long said she didn't think the attrition rate at the Columbus plant would be too high, but said she could not provide that figure.
Baldor began a hiring freeze in late summer as it looked for ways to reduce costs. Attrition has claimed 475 employees of the projected 900 goal.
The hiring freeze is expected to last another three to six months, Long said.
The company also has used four-day work weeks at some plants, cut overtime, limited discretionary spending and paid down debt in an effort to cut costs.
"We're seeing business slow down just as everybody else," Long said.
The company has experienced a "single-digit" decline in its order rate, Long said. With so many customers having extended holiday shutdowns this year, Baldor isn't yet sure if the reduced order rate is the result of just inventory reduction.
"We're eager to get back in January and see if the normal order pattern resumes," Long said.
In July, Baldor announced record sales and earnings for the second quarter, despite increased material and transportation costs.
Sales increased 3 percent from the previous year to $504 million, and net income increased 17 percent to $29.4 million.
Also in July, Baldor eliminated 22 jobs at the Columbus plant when it moved some production of gear boxes and clutch brakes to South Carolina.
Long said those jobs cuts are not related to the company's attrition plan.