Bearing maker Timken to cut 400 salaried jobs

Bearing maker Timken Co. said Monday it will cut 400 salaried jobs this year, or almost 2 percent of its work force, as it reduces costs to match a slowing market for its products.

The Canton, Ohio-based company said it expects the effort to generate pretax savings of $30 million to $40 million per year in selling and administrative costs. The company said it already has cut production, shortened work weeks and reduced operating hours to better align production to slower demand.

Timken said in a news release that it has cut its manufacturing work force by 2,500 positions during the past 15 months.

"Additional permanent adjustments will be made as necessary to right-size capacity to market needs," the company said in a news release.

In cutting the 400 salaried jobs this year, Timken said it expects to incur $10 million to $15 million in severance costs.

"We believe this reorganization will simplify our operating structure, improving our effectiveness in managing through these challenging economic times," James W. Griffith, the company's president and CEO said in a statement.

Timken lost $36.2 million in the fourth quarter, but earned a $267.7 million profit last year.