Magna International to slash 400 jobs in Ontario

Wed Jun 18, 2008 12:22pm EDT
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TORONTO (Reuters) - Magna International Inc MGa.TO said on Wednesday it would lay off about 400 workers from a St. Thomas, Ontario, parts plant, where it makes truck frames, due to a "considerable downturn" in demand for full-sized trucks.

Formet Industries, a manufacturing division of Magna's Cosma operating unit, said the layoffs, which include both salaried and hourly workers, will be effective September 8.

Magna said Formet would provide severance packages based on years worked for Magna and will help affected employees with their search for new jobs.

The plant currently has 1,600 workers and began operations in 1997.

General Motors GM.N, one of Magna's main customers, recently said it would shut four North American truck plants, reducing its pickup truck and SUV capacity by over 700,000 units.

(Reporting by John McCrank; editing by Rob Wilson)