Delphi to cut 650 jobs, outsource finance functions to India

Delphi to cut 650 jobs, outsource finance functions to India
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First Published: Wed, Apr 04 2007. 11 26 AM IST
Updated: Wed, Apr 04 2007. 11 26 AM IST
By Jeff Bennett/Bloomberg
Michigan: Delphi Corp., the largest U.S. auto- parts maker, will cut 650 global finance jobs and outsource the work to India to help cut $150 million (Rs643crore) in preparation for leaving bankruptcy protection.
The company plans to use Genpact International LLC for accounts payable and expense reporting, Delphi spokeswoman Claudia Piccinin said on 4 April. The move must receive bankruptcy court approval.
Cost-cutting is part of the transformation plan that Troy, Michigan-based Delphi announced last year. Delphi is closing 21 of 29 manufacturing sites, exiting some of its businesses such as making steering wheels, and reducing its global salaried workforce by 8,500 to save $450 million a year.
About $150 million will be saved over the 88-month term of the contract with Gurgaon-based Genpact, Delphi said in a court filing.
Separately, Owl Creek I LP fund joined a group of six firms, headed by Cerberus Capital Management LP, interested in making a $3.4 billion investment in Delphi.
The New York-based fund agreed to buy as much as 2.4 million shares from the investor group or through a stock offering, Delphi said in a regulatory filing on 3 April.
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First Published: Wed, Apr 04 2007. 11 26 AM IST
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