Meritor Announces Restructuring, Will Reduce Headcount by 200 Salaried Employees
Meritor, Inc. (NASDAQ: MTOR) previously announced a revised management reporting structure resulting in two business segments to drive efficiencies. Meritor's new business segments are Commercial Truck & Industrial; and Aftermarket & Trailer. On January 3, 2013, the Board of Directors of Meritor approved restructuring actions related to Meritor's business segment rationalization. Meritor expects to complete these restructuring actions over the next 12 to 18 months and currently estimates that charges in the range of $15 million to $25 million will be incurred in connection with these actions. Of these charges, $15 million are expected to be for employee severance costs associated with the elimination of approximately 200 salaried employees (including contract employees). The remainder of the charges are for expected lease termination and other associated costs. Meritor expects a substantial portion of the charges incurred in connection with these actions to result in cash expenditures. Management intends to further detail the expected benefits of these actions as well as the expected timing of costs and benefits at Meritor's meeting with investors and analysts in New York, NY, on February 5, 2013. This meeting will be accessible to the public by means of web-cast conference call.
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