Tenneco’s Savings Plan to Eliminate 6,000 Jobs : Heavy industry: Most of the cuts will be at the conglomerate’s largest division, the troubled J. I. Case farm equipment unit.
Tenneco Inc., one of the nation’s major conglomerates, said Tuesday that its $2-billion cost-saving program will eliminate 6,000 jobs throughout the company by the end of 1992.
The company has said that it was laying off thousands of workers, but did not release total numbers.
The biggest job cuts--4,000 workers--will be at Tenneco’s troubled J. I. Case farm and construction equipment unit. About 2,000 employees will also lose their jobs at the conglomerate’s other divisions.
The far-flung company said it expects to save an additional $50 million from manufacturing efficiency and improved quality programs by the end of 1992, beyond the $250 million previously announced.
Early this year, the Houston-based company employed 92,000 people in 32 countries.
Tenneco stock fell 37.5 cents to $29.125 a share on the New York Stock Exchange.
The conglomerate, which operates in farm and construction equipment, shipbuilding, natural gas transmission, chemicals, minerals, packaging and automotive products, has been hurt by the recession. In addition, the end of the Cold War has slowed military shipbuilding.
It reported a third-quarter loss of $693 million on sales of $3.2 billion, contrasted with a profit of $91 million on sales of $3.4 billion in the same quarter of 1990.
Tenneco said its $2-billion restructuring plan announced in September also involved the sale of assets and a stock offering.
Its equity offering raised $516 million and the money will be used to reduce short-term debt, the company said.
Tenneco said it is selling its natural gas liquids business to Enron Corp. for $632 million. It also found buyers for three of its short-line railroads for $54 million.
“While this achieves the company’s original action plan commitment, we will continue to aggressively pursue the additional asset sales,” said Michael Walsh, Tenneco president and chief executive-designate.
Tenneco said it plans to sell its sodium chlorate business, Sperry Marine, Viscosity Oil and some timber properties.
Walsh said the company will take “aggressive actions” at J. I. Case, including plant closings and job cuts. Case, Tenneco’s biggest division, lost money this year partly because of stiff competition in the farm equipment business.