TRW To Layoff 2400

CLEVELAND, Oct. 16 -- TRW Inc. announced today further actions to accelerate the transformation of TRW into a leaner, faster, and more customer-responsive company.

These actions include consolidating the company's global automotive operations into a single TRW Automotive unit. The company will reduce total automotive employment by approximately 2,400, which includes a 10% reduction in salaried positions. The majority of the approximately 2,400 reductions will occur in the current quarter. The newly consolidated unit will be based in Livonia, Michigan and led by John C. Plant, president and chief executive officer. Mr. Plant was the senior executive of the TRW Chassis Systems business. James F. Smith, president and chief executive officer of the Occupant Safety Systems unit, will work directly with the chairman's office to effect an orderly transition. Mr. Smith plans to retire November 1, 2001. Commenting on the action, TRW Chairman, President and Chief Executive Officer, David M. Cote said, "For TRW's global automotive customers, these actions are particularly important as they will better enable us to deliver high-quality parts on time, provide better support and improve operational discipline. Economic conditions prior to the September 11 tragedy were already adversely affecting our automotive businesses, and the uncertainties of the current market have added to the pressure. A single automotive unit will improve the speed of decision-making and encourage consistent operating and customer practices throughout the entire auto business. "The employment reductions now underway throughout the automotive business are difficult, but essential to improve TRW's competitiveness. We anticipate from these actions faster decision-making, more consistent operating and customer practices, faster introduction of Six Sigma, and lower cost," Mr. Cote said. TRW provides advanced-technology products and services for the aerospace, information systems, and automotive markets. The company's news releases are available through TRW's corporate Web site, http://www.trw.com .