The Lisle-based heavy-duty truck and engine maker said the cuts will be companywide, but mainly in North America. Navistar said it's still evaluating which departments the cuts will affect.
Over the past year, the company said, it's been looking to reduce its cost structure. "This is a continuation of that," said Elissa Maurer, a spokeswoman for Navistar. "Unfortunately, it is not an easy decision, but it's something that is necessary."
Navistar's recent troubles stem largely from its bungled three-year, $700 million effort to develop new technology for large diesel engines that could meet federal emissions standards.
Navistar held 28 percent of the U.S. and Canadian heavy-truck market in 2010, narrowly trailing leader Freightliner, a division of Daimler A.G. By the first quarter of 2013, the number was down to 14 percent, the company reported in April.
Navistar abandoned its alternative engine technology late last year and began installing 15-liter engines built by Cummins Inc. The Environmental Protection Agency recently certified its 13-liter engine, which, like Cummins, uses industry-standard technology to reduce emissions.
Recently Navistar announced plans to save $175 million by selling assets, closing plants and reducing its workforce, which it did by 2,100 employees in 2012. In a recent call with investors and analysts, company executives said it was on track to meet or exceed the $175 million goal.
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