Financial Collapse RSS

Nov 27, 2008

Chrysler nearly 5,000 job cuts

Chrysler LLC says it expects minimal involuntary layoffs will be needed to reach its goal of cutting 25 percent of its salaried and contract work forces.

The deadline for white-collar workers to accept the company's buyout and early retirement offers is Wednesday.

Spokeswoman Shawn Morgan wouldn't say how many workers have taken the offers so far because they have until Sunday to change their minds. For those who take the offers, their last day at work will be Wednesday.

She said Chrysler may still have to make involuntary cuts to reach its goals.

"We anticipate it to be minimal," she said.

Chrysler announced last month it would slash about 5,000 white-collar and contract workers to deal with a continued downward spiral in U.S. auto sales.

Industry analysts said the cut is so large that it would affect the company's product development plans.

Workers were offered buyouts of up to $75,000, six months of health care and a $25,000 voucher toward the purchase of a new Chrysler vehicle.

Chief Executive Robert Nardelli, in a memo announcing the cuts in October, warned that more restructuring is coming at a pace faster than ever.

"In the near future, we will be making organizational announcements as a result of restructuring actions reflecting the need to find new ways to operate," he wrote.

Morgan said it's too early to tell if more cuts are coming. The company, though, is preparing a restructuring plan for Congress next week as it and other automakers go after $25 billion in government loans.

Chrysler said in a statement issued Wednesday that the reductions are "necessary to ensure the company's long-term viability and competitiveness as we appeal to Congress for a $7 billion working capital bridge loan."

The company now has about 17,300 salaried workers in the U.S. Morgan would not say how many contract workers it has. Contract workers generally are employed by other companies but work at the automaker's facilities.


Related Posts with Thumbnails