Dated: 05 January 2010
Kuhmo Execs To Get The Axe
If any Kuhmo Tire executives were planning on a nice relaxing read of the Wall Street Journal on their commute back to work today, they will be in for a bit of a shock. Reports from the newspaper are indicating that around a fifth of Kuhmo’s executives are set to lose their jobs as part of a financial restructure.
Not the start to the New Year that many at the company would have hoped for, as on top of the job cuts, the Wall Street Journal reports that the remaining management could see their salaries drop by up to 20%.
Unfortunately for Kumho, that’s not all. As well as the possible loss of jobs and the slashing of salaries, all employees – apart from an unspecified number of assembly line workers – have reportedly taken a month’s mandatory unpaid leave in order to help with the financial trouble.
All this news has come on the back of a previous statement from the tyre manufacturer stating that they intended to raise more than £695 million through the restructuring of assets. That saw Kuhmo Tire shares plummet by a massive 15% - the maximum that share prices can drop on any given day.