Dana hints at cuts due to Obamacare
Mon, 12 Nov 2012 21:44:58 GMT —
Dana Holding Corp.'s $24 million in costs due to "Obamacare" over the next six years may lead to layoffs, according to The Washington Times.
The Maumee-based global auto parts manufacturer has warned employees of the repercussions of new laws and regulations associated with the Patient Protection and Affordable Care Act. Along with falling commercial vehicle demand and increased health care expenses, Dana CEO Roger Wood cites economic uncertainty as factors threatening their business, thus leading to potential cuts.
In a memo to employees, Wood said "Obamacare" will create health care costs "that our customers are not willing to cover, mandating that we reduce our overhead expenses to cover them." The company says while layoffs may be on the way, they will also look to other cost-saving measures before cutting workers.
According to the Washington Times, the company has already laid off several white collar staffers, and insiders point to more to come.
Dana's current global workforce stands at nearly 25,000 employees.
(This article has been updated from its original post.)