Fiat To Cut More Than 8,000 Jobs In Restructuring Effort

Autoparts Report, Oct 18, 2002

Fiat said that it will make 8,100 job cuts as part of a restructuring program. The financially troubled Italian company said it will put 5,600 workers on a one-year layoff, reduce staff by another 500 through early retirement, and lay off 2,000 more next summer.

Fiat Auto posted an operating loss of nearly $800 million in the first half of this year and earlier this year said it would impose early retirement on 2,900 workers.

Fiat has asked the Italian government to declare a "crisis" so the company can avoid dealing with the country's strict labor laws and so that laid-off workers can be paid by the government.