Ryder cuts Brazil, Argentina, Chile ops, 3,100 jobs

Wed Dec 17, 2008 11:06pm GMT
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DETROIT (Reuters) - U.S. truck leasing and logistics firm Ryder System Inc (R.N: Quote, Profile, Research) said on Wednesday that it was discontinuing its operations in Brazil, Argentina and Chile and cutting 3,100 jobs, citing deteriorating global economic and financial conditions.

The Miami-based firm said in a U.S. Securities and Exchange Commission filing that it was also moving out of supply chain contracts in Europe and would focus on expanding its United Kingdom operations.

The company said the measures would result in the loss of around 2,400 jobs and pre-tax restructuring charges of approximately $38 million to $45 million.

Ryder also said it was cutting 700 jobs, most of which would be in the United States.

"We believe deteriorating global economic and financial conditions will continue to negatively impact commercial rental performance, used vehicle sales, the automotive sector, and pension plan returns in 2009," the company said in the filing.

The planned 700 layoffs would result in cost savings of approximately $36 million in savings "which will partially offset the impact of these significant challenges."

(Reporting by Nick Carey, editing by Leslie Gevirtz)

 
 

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