The latest effects of the downturn in the auto industry due to a poor economy and record-high gas prices see Chrysler cutting 1,000 white-collar workers. On Wednesday, Chrysler LLC announced it would cut 1,000 salaried jobs before October in order to cut costs. The automaker notified its employees of these plans via a staff memo from human resources staff.
The company said the job cuts will occur as a result of retirements, special programs and attrition. While the cuts will be made in the automaker’s worldwide operations, it is not know how many will come from North America, although it is expected to make up the majority of the cuts.
“To respond to the current market conditions, an incremental manpower reduction of 1,000 salaried employees by September 30, 2008, will be required,” the memo read, which was sent out by Chrysler ’s spokesperson and human resources head, Nancy Rae, according to an Automotive News report.
The automaker recently took other measures to cut costs, including idling its Mexican Dodge Ram production plant as well as closing its minivan plant and eliminating a shift at the St. Louis truck plant. Thanks to these measures, among others, privately-held Chrysler said its liquid assets remained unchanged since December of last year up until July.
