Lear Plans to Cut 2,800 Jobs, Close Plants

Lear Corp. said it will cut about 2,800 jobs, or about 5% of its work force, as it closes 18 plants in a previously disclosed plan to reduce costs in North America and Europe. The world’s largest maker of car seats will take a pretax charge of about $133 million, or $1.37 a share, in the fourth quarter, which analysts said is expected to result in a loss for the quarter. The restructuring is prompted by the need to cut costs after Lear’s rapid growth in Europe and North America during the last two years, which included its purchase of Delphi Automotive Systems’ seating unit for about $250 million in September. Most of the Southfield, Mich.-based company’s cuts will be in Europe. In North America, two plants will be closed and 1,100 jobs cut. Lear’s stock rose $1.44 to close at $38.81 on the NYSE.