Auto Parts Manufacturer Navistar Laying Off Factory Workers

job cuts

Navistar International is Laying off 81 Employees

Truck parts manufacturer Navistar International Corp is laying off more than 80 employees at its Ohio facility.

Navistar’s Truck Specialty Center in Springfield, Ohio will be sending home 81 workers as the company continues to restructure. Of these 81 employees, 78 are journeyman mechanics, two are clerks, and one is a temporary full-time contractor. Navistar has nearly 1,500 workers in Clark County, which makes it one of the largest employers in the area.

The layoffs are expected to begin in early August and continue in September. The company’s latest restructuring efforts went into effect after Navistar signed an agreement with General Motors Company to jointly manufacture medium-duty trucks. The manufacturing will take place at the Springfield plant and is expected to eliminate some jobs to make way for new ones.

Navistar has been losing money and piling up debt in the recent quarters. The company lost $62.0 million in the first quarter of 2017 alone. Navistar has largely been struggling as demand for big trucks drops and America’s trucking industry evolves with new technology. (Source: Ibid.)


Management is now aiming to change the company’s course by forming strategic alliances with other auto manufacturers. Prior to the agreement with General Motors, Navistar entered into a partnership agreement with Volkswagen AG. Volkswagen’s truck business segment acquired a 16.6 % stake in Navistar in September 2016.

The latest restructuring efforts are taking place under CEO Troy Clarke, who happens to be a former North American president of General Motors. After taking charge of Navistar, Clarke identified the company as having an organizational problem. The CEO is making an effort to turn the company to profitability in the highly-competitive and capital-intensive industry of auto parts manufacturing (Source: Ibid.)

Clarke has laid off more than 4,000 employees since taking control of Navistar. The current headcount of employees is 14,400. In the same period, the company has managed to trim its losses from a staggering $3.0 billion in 2012 to $184.0 million by end of its fiscal-year 2016. (Source: Ibid.)



Clarke Rebuilds Navistar After Truck Maker’s Costly Stumbles”,, September 6, 2016.

Navistar to lay off more than 80 workers,” Springfield News-Sun, June 5, 2017.