The automotive supplier also plans to cut about 6,500 workers, which would cut Lear's employee total work force by about 6%, says Lear director of communications Andrea Puchalski.
She tells GlobeSt.com that cuts will take place over 18 months, mostly throughout the next year. "We're expecting to have 75% of the plants closed by year end," she adds.
One plant has already been closed in O'Fallon, MO, which employed 100 people. The plant was doing work for General Motors Corp., building interiors for full size vans.
"I think that plant was already closing because GM was canceling the program," Puchalski says. She adds the rest of the closures are being done on a case-by-case basis.
There is no public list of which ones will close next, or where. However, she says there will be 16 locations in North and South America to close, and five in Europe.
In many of the areas, Puchalski says closing plants will be consolidated into those that stay. She notes the cuts are not abnormal compared to the rest of the automotive supplier industry.
"You look at Dephi, who cut 12,900 people, and Goodyear, who also cut more than 12,000, it's just very prevalent for the supply companies," she says.
Bob Rossiter, president and chief executive officer of Lear Corp., said late last year that the company had expected difficulty due to weakening economic conditions.
"However, the extraordinary events made it a more difficult third quarter than anyone could have anticipated," Rossiter says.
Puchalski says with the economy looking promising, the company does not anticipate having to make any more corrections.
The company last year reported revenue of $13.6 billion.
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