Rheinmetall to cut jobs, reduce costs

Bloomberg

Rheinmetall will accelerate restructuring at German factories, leading to 250 job losses by early 2010 on top of the 500 temporary workers let go over the past two months, the Dusseldorf, Germany-based company said Friday in a statement. Expenses will be lowered by reducing energy, maintenance and information technology spending, spokesman Peter Ruecker said in a telephone interview.

Break to be extended
The manufacturer’s automotive plants will extend the Christmas break to as long as four weeks and nearly all German workers will have reduced working hours in the first half of 2009, the company said. Automotive capital spending will be trimmed "significantly" next year and Rheinmetall said it is considering other measures. "If it’s necessary to abandon products or individual business activities, we will tackle it promptly," Chief Executive Officer Klaus Eberhardt said in the statement. "If it’s appropriate to adjust the international plants and production structure faster than anticipated, we will do this too."