Audio systems maker Harman International Industries Inc slashed its full-year outlook and said it would cut up to 9 percent of its workforce after second-quarter profit missed Street estimates due to lower sales to European carmakers.
Harman shares plunged 14 percent to $42.49 in morning trade on the New York Stock Exchange.
“We expected European production to be lower, but the accelerated slowdown in the month of December really surprised us,” Chief Executive Dinesh Paliwal told Reuters.
Harman, which owns brands such as JBL and Harman Kardon, said it would shed about 500 jobs in high-cost countries. It is also considering the sale or closure of a manufacturing site in Europe, which could cut a further 500 jobs.
“We are reducing 500 permanent jobs in high cost countries in Europe and America,” Paliwal said.
Chosen excerpts by Job Market Monitor from