updated 2/16/2009 5:13:36 PM ET 2009-02-16T22:13:36

Nearly 800 jobs are being eliminated at the steering division of Delphi Corp. near Saginaw, Mich.

The cuts announced Monday are hitting 425 hourly workers and 350 employees who are on salary at the Delphi complex in Buena Vista Township. They will kick in March 1.

"We've anticipated this for some time," said Mike Hanley, president of United Auto Workers Local 699.

Delphi has had temporary furloughs since the start of the year, he told The Saginaw News.

Blue-collar workers who volunteer to leave will get a severance. Workers with low seniority can leave and get a severance or put their name on a recall list.

The white-collar layoffs are in all departments, including engineering, purchasing, manufacturing and sales. Before the cuts, Delphi's steering division had 3,600 employees.

"Delphi Steering will continue to evaluate its staffing needs and make the necessary adjustments based on customer volumes and related economic factors impacting our business," said David Barnas, executive director of global external affairs for steering.

Delphi has been operating under bankruptcy protection since October 2005. It put the steering division up for sale after identifying it as a non-core business.

A sale to Platinum Equity, a Los Angeles-based private-equity firm, is pending.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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