Longview's Dana Corp. plant expects to pare its staffing by more than a third — or about 200 positions — by October.

Plant Manager Mark Anderson said Thursday that the company's workforce should number about 350 by October as Dana responds to production cutbacks from one of the local plant's largest customers — General Motors. That will be down from about 545 workers who have been on the job at the Longview plant in recent weeks.

"We held a second round of talks with our people this week to let them know what's going on," Anderson said. "Right now, it looks like we'll be losing about 125 of our Dana team members and another 78 temp, or contract, workers."

He said the cuts will include salaried and production line positions.

"This is a moving target right now, and those numbers could change some, but that's what we're looking at right now," Anderson said.

Anderson said Dana officials have been in contact with the Texas Workforce Commission to help the workers who will be losing their jobs.

"We plan to do everything we can to help our people find new jobs," he said. "Right now, over the next couple of months, our biggest challenge is to continue to safely produce quality products for Dana."

The Longview plant supplies a General Motors truck plant in Shreveport and makes parts for Toyota that are shipped to a plant in California. GM in July announced plans to cut its Shreveport assembly operation from two shifts to one shift in September.

Anderson said the Longview Dana cuts are in direct response to GM's action. Dana produces frames for the GM Canyon and Colorado pickup lines and will be making a larger frame for the company's new Hummer line.

He said the startup of frame production for the new Hummer will mean the Longview Dana plant will not shut down production the week of Aug. 25 as was earlier announced.

"We will be running that week, so that's good news," Anderson said.

Longview Economic Development Corp. Executive Director John Stroud that while he never likes to hear news about people losing their jobs, if it has to happen locally, this is a good time for it.

"We certainly regret General Motors cutting back their production in Shreveport from two shifts to one," he said.

"But with our low unemployment rate right now, there are certainly plenty of jobs to go around."

He said Sysco Foods plans to fill about 350 positions by October while many other local manufacturing facilities and oilfield service firms are having trouble filling vacancies, Stroud said.

The three-county Longview Metropolitan Statistical Area of Gregg, Rusk and Upshur counties had a June unemployment rate of 4.2 percent.

The Texas Workforce Commission reported the Longview area led the state in percentage of job growth rate between June 2007 and June 2008, adding about 3,100 jobs.

Dana's local job cut news came on the heels of its parent firm, Ohio-based Dana Holding Corp., posting a quarterly loss Thursday.

Dana cited lower vehicle production in North America and higher steel costs, and said it planned to cut about 3,000 jobs — nearly 9 percent of its workforce — this year.

Dana, which emerged from bankruptcy early this year, said it was making progress in its turnaround despite a sharp downturn in the U.S. auto industry, thanks to additional restructuring and cost reductions.

"We are making progress in our turnaround despite unprecendented headwinds in North America," said John Devine, executive chairman, in a prepared statement. "The combination of much lower production volumes and higher steel costs has put considerable pressure on our 2008 operating results."

The company's second-quarter net loss widened to $140 million, or $1.47 per share, from $133 million, or 89 cents per share, a year earlier. Revenue rose 2 percent to $2.3 billion.

Dana said it needed to slash about 3,000 positions over the course of 2008, including the planned reduction of 500 salaried positions announced last week.

The auto industry supplier makes axles, driveshafts, frames and other parts, and employees about 35,000 people.