28.08.2008

Linamar cuts workforce

Linamar, the Canadian automotive component supplier that owns Skyjack has lain off between 400 and 500 employees, while the 200 to 300 workers previously laid off will have their furloughs extended.

Staff across all of the Guelph based company's manufacturing plants as well as overseas were informed yesterday of the layoffs which are described in an internal memo as temporary. A spokesman said that the employees will return to work when "volumes pick up again".

Linamar's said the layoffs were necessary because of falling volumes at Linamar's customers in the automotive and construction industries, as well as rising costs for raw materials, energy and transportation.

Linamar has more than 12,000 employees in 38 manufacturing facilities 22 of which are located in Guelph, where the majority of the layoffs occurred.

The company said that looking forward the financial outlook remains good, no details of how many of the lay-offs will come from the Skyjack business.