ERIE, Pa. -- GE Transportation Systems will cut about 1,100 jobs,
including 900 at the locomotive maker's operations in Erie, a wire
service reports.
The Erie-based company said Wednesday it is
cutting jobs because of a continuing decline in orders for new
locomotives. Jeff DeMarrais, a spokesman for GE Transportation
Systems, said orders dropped from 911 in 1999 to 550 last
year.
Orders were expected to fall to about 350 locomotives
this year, he said.
“Our production schedule for 2002 is down
about 40 percent from last year,” DeMarrais said. “We need to adjust
our work force and cost structure to the lower volume levels we
expect.”
The reductions are expected to be made through early
retirements and layoffs. DeMarrais also said the company is
negotiating with unions to restructure the company.
Other
cuts in positions are expected at GE Transportation Systems'
facility in Melbourne, Fla., and other locations. DeMarrais said he
could not say where the additional cuts would be made or how many
reductions would be made at the Florida plant.
Workers at GE
Transportation Systems' facility in Grove City, where engines for
the locomotives are made, aren't expected to be affected, DeMarrais
said.
GE Transportation Systems currently employs about 8,000
people worldwide.