International Truck & Engine Corp. announced plans Dec. 12 to dismiss 250 Ohio workers after the first of the year and cut truck production due to declining demand, The Associated Press reported.

Most of the layoffs are scheduled to go into effect Jan. 3. About 2,000 workers are employed at the Springfield, OH, plant.

International spokesman Kyle Rose told The AP the plant would cut production of medium-duty trucks to 143 a day, 19 fewer than current production.

"Market demand out there right now doesn't support keeping the rate at that level," Rose said. "When you're building fewer trucks, one of the results is it requires fewer employees to do that."

The layoffs follow an announcement earlier in the week that the company's president and chief operating officer, Daniel C. Ustian, has been elected chief executive officer, effective Feb. 19, 2003.

Ustian will succeed John R. Horne, who will continue to serve as chairman of the board. Robert C. Lannert will continue to serve as vice chairman of the board of directors and chief financial officer. The role of chief operating officer will not be filled.

International is a subsidiary of Chicago-based Navistar Corp.