By Kirk Johannesen, The Republic
johannesen@therepublic.com
NTN Driveshaft laid off 200 hourly employees this morning, citing the slumping automotive industry and declining sales in a letter given to employees that were dismissed.
The company previously cut production employees' hours from 40 to 28 (four seven-hour days), as a means of cutting costs.
NTN, which supplies continuous velocity joints to all major automotive companies in North America, employed about 1,300 before the layoffs.
The Republic acquired a copy of the letter from an employee who was laid off. The letter, signed by Administration Manager Dennis Fogle, said:
"Effective February 12, 2009, NTN Driveshaft, Inc. has found it necessary to reduce its workforce. As we look to the future, we find it hard to determine where the automotive market will stabilize. We are optimistic about the long term plans but must be cautious in this volatile market.
"NTN Driveshaft, Inc. will be reducing the workforce by approximately 200 employees. Those employees being out placed by the reduction will remain on a recall list and will be asked to return to employment on an as needed basis."