Delphi facing job cuts in Kokomo

By SCOTT SMITH, Kokomo Tribune

scott.smith@kokomotribune.com

Town hall meetings between Delphi Corp. executive Jeff Owens and salaried employees today will reveal the fate of hundreds of white collar jobs throughout the company's Electronics & Safety division.

Long a mainstay of the Kokomo economy, the salaried engineering positions at the division's Kokomo headquarters are expected to be significantly reduced.

Owens released the following statement at 8:30 a.m.:

"Delphi Electronics & Safety has advised employees that it will be taking the difficult step of aligning its resources with the dramatic shifts that have occurred in the North American vehicle market. Consumer trends and market conditions have caused fundamental shifts in consumer preferences, impacting both the volume and mix of vehicles produced by our North American customers. Delphi E&S is reacting quickly to align its business with these rapidly changing conditions to assure Delphi's continued competitiveness.

"We are keenly aware of the impact of these actions on our employees and communities in which we live and work, and Delphi will take the necessary steps to reduce the impact on their lives and on our plant cities as much as we can."

The division, which employs about 4,000 in Kokomo, has struggled to emerge from bankruptcy since a financing package fell through in April.

And Friday the federal government warned Delphi it must transfer $1.5 billion in unfunded pension obligations to General Motors by Sept. 30. Analysts doubt the company has the necessary cash.

Rumors have circulated for at least two weeks that last Friday would be the day of reckoning at E & S headquarters in Kokomo, but company spokesman Jay Jiang indicated the employees would learn today how the company intends to proceed with salaried reductions.

"The announcement [Monday] is not about the people's last day; it's about some reductions of salaried employees," Jiang said early Friday. "There will be a process to get that done."

Jiang said he couldn't confirm any specifics about the looming layoffs Friday, and said company officials had yet to circulate those facts among its salaried work force.

"We would like our employees to get the message from us first," Jiang said Friday. "Right now is a difficult time for Delphi. A lot of things being said, rumors, are not true. We're trying to survive, and there are difficult decisions to be made."