Textron Plans Deep Cuts in Former Ex-Cell-O Corporate Staff
DETROIT (AP) _ Rhode Island manufacturer Textron Inc. announced plans Wednesday to close the headquarters of the recently acquired Ex-Cell-O Corp., putting three- fourths of the Michigan company’s corporate staff out of work.
The layoffs, designed to eliminate duplication of Textron’s operations, will reduce Ex-Cell-O’s white-collar workforce by 144 people in Troy and Walled Lake, both near Detroit.
″They are all corporate-office employees,″ said Raymond W. Caine Jr., Textron vice president for corporate communications, from the company’s Providence, R.I., headquarters. ″No operating divisions are involved.″
The layoffs, which will run from Nov. 15 to March 30, came two months after Textron and Ex-Cell-O officials had said the friendly, $1.04 billion takeover likely would not cost jobs.
In announcing the merger agreement in August, Textron President Beverly F. Dolan said he hoped to see ″a net gain in employees in Michigan, rather than a net loss.″
Ex-Cell-O Chairman E. Paul Casey, who will become vice chairman at Textron, at that time said Ex-Cell-O was likely to retain its Troy headquarters.
Textron will retain 51 employees of Ex-Cell-O’s former corporate offices, transferring 21 to its Providence offices and retaining 30 at Walled Lake, Caine said.
″We plan to phase out the Troy headquarters,″ Caine said. ″The folks being invited to stay include such functions as audit, the employee benefits function, insurance, human resources, and financial functions.″
Ex-Cell-O overall employs 15,400 workers, about 2,600 of them in Michigan. The company, which makes products for the automotive and aerospace industries, reported $57.6 million in profits last year on $1.1 billion in sales.
Textron employs 56,000 workers in the aerospace, financial services, industrial goods and consumer products sectors. Last year it earned $251.8 million on $5.7 billion in sales.