Zenith Announces Layoffs After Dismal 3rd Quarter

Zenith Electronics Corp. said Tuesday it lost $41.8 million in the third quarter, largely because of restructuring costs.

The television and consumer electronics maker also said it will lay off 15% of its salaried U.S. staff--about 390 workers--to cut operating expenses.

Zenith’s loss amounted to $1.42 a share, compared to a loss of $1.5 million, or 5 cents a share, in last year’s third quarter.

Third-quarter sales fell 9% to $313 million from $344 million in 1991.

Zenith, based in Glenview, Ill., said operating losses added to the poor performance for the quarter.

Third-quarter results included special charges of $23 million, mostly provisions for severance and other restructuring costs.

Zenith has 2,600 salaried workers in the United States. Its work force worldwide is 25,000.

Spokesman John Taylor said layoffs will begin in the fourth quarter.

Zenith said it plans to reduce ongoing fixed costs and operating expenses, including consolidating its manufacturing operations and reducing the number of jobs in Mexico.

“We don’t have a specific number of jobs in mind yet,” Taylor said of the Mexico cuts.

Zenith, the last major U.S. television maker, has posted losses for the last two years.