Federal-Mogul Corp. said Friday it may cut up to 10 percent of its work force, or roughly 4,500 jobs, and close up to 25 plants as part of a three-year restructuring aimed at restoring profitability as the car parts maker strives to emerge from bankruptcy.
The company, which filed for Chapter 11 bankruptcy protection in 2001 as a result of asbestos claims related to an acquisition, employs 45,000 workers at 130 manufacturing sites worldwide, according to its Web site. The company did not specify the location of the possible job cuts or plant closures.
Federal-Mogul estimated costs for the restructuring between $125 million to $150 million.
The company said it hasn't finalized details of the plan, but added it expects to record charges for costs and expenses for the restructuring in the current and future quarters.
Over-the-counter shares of Federal-Mogul were up 1 cent to 36 cents.