Layoffs Halted for Hundreds of People Days Before They Were Set to Lose Job
First Brands Group has paused planned layoffs for hundreds of employees just days before they were set to take effect, citing ongoing efforts to sell assets and secure a buyer. The auto-parts manufacturer, in Chapter 11 bankruptcy since September, faces a criminal fraud case against its former executives and has already cut thousands of jobs across the U.S. The company requested a 90-day extension to maintain control of its restructuring, arguing it needs more time to finalize deals that could preserve 1,600 jobs. While some employees will remain employed through May, the long-term outlook remains uncertain without a successful sale.
Opening excerpt (first ~120 words) tap to expand
By Jenni FinkSenior Editor, PoliticsShareNewsweek is a Trust Project memberSee more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.Days before mass layoffs were expected to hit First Brands Group workers, hundreds of people were told they would actually keep their jobs. But the good news could be short-lived if the company doesn't find a buyer amid a bankruptcy and criminal case.First Brands Group, the auto‑parts manufacturer behind brands such as FRAM, Autolite and Trico, has been mired in legal and financial turmoil since filing for Chapter 11 bankruptcy protection in September. The restructuring has unfolded alongside federal fraud charges against former top executives and a rapid wind‑down of U.S.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Newsweek.
Discussion
0 commentsMore from Newsweek
