For the past few weeks, the news has all been about its parent, Fiat, which was said to be trying to buy Chrysler. Today, that changed. Fiat reported 1st Qtr losses of $536 million and its subsidiary, CNH, reported its own losses, of $126 million.
And the news switched to talk about whether Fiat would have to sell its "jewel" -- yes, that's CNH -- to whether it can buy Chrysler at all. Or whether it would try to buy some of Opel from GM.
And, closer to home, to talk about job cuts at CNH.
Early this morning, an article from Agence France Press said Fiat planned 4,600 job cuts at CNH. This afternoon, that number was changed to 1,500 job cuts. The change was explained this way: A spokesman said Fiat is planning to cut between 10 and 15 percent of CNH's "administrative" jobs; the earlier number came when another spokesman "said earlier that the percentage applied to a total of 31,500 jobs."
The CNH earnings notice contained numerous references to cutbacks, personnel reductions and right-sizing. As in:
- "$250 million to be invested in reorganization."
- "CNH also announced that it will invest approximately $250 million over the next 12 months to reduce costs and improve operating efficiency. "
- "The magnitude and speed of industry declines leads us to believe that such actions are not sufficient. Accordingly, we are today announcing a $250 million global industrial consolidation and reorganization plan to further adjust cost and operating levels," said Harold Boyanovsky, CNH president and chief executive officer.
- "To right-size CNH's structure ... these plans include further personnel reductions, cost reduction initiatives, re-organizations, and/or restructurings."