RSS RSS Twitter Twitter
Leftlane - news, reviews, and info for the auto-industry
 
 

Chrysler to cut 200 IT employees and more contract workers

04/04/2008, 8:47 AM

By paulee

Chrysler on Wednesday announced it would cut 200 salaried workers and an unspecified number of contract workers in information technology management. The cuts are slated to start in early May and be completed by the end of September as the struggling automaker restructures its operations under the supervision of Cerebrus. The automaker will outsource computer maintenance instead to Tata Consultancy Services and Computer Sciences Corp in a multi-year deal.

The employee cuts represent roughly 20 percent of the 1,000 or so IT staff, though the specific amount of the approximate 1,100 contracts that will be terminated is not known, according to Chrysler spokesperson Kevin Frasier as reported in Automotive News.

The amount of savings or value of the outsourcing deal was not revealed, though the outsourcing could move outside of North America. Key roles such as architecture will be maintained in-house, Frazier announced.

    Print This Post

New car price quote

Zero obligation price quote from a trusted local dealer.
 
 

04/04, 9:18 AM

posted by:

corvette

Chrysler’s going down.

04/04, 9:43 AM

posted by:

WOOKIE62

Chrysler will be around long after you ****ers actually come up with something intelligent to say!

04/04, 9:48 AM

posted by:

Need4SSpeed

That’s not good news. Especially for those like me that are going into the IT department. Well I already knew not to work for any of the domestics anyways.

04/04, 10:09 AM

posted by:

400horseSS

Old news I put up a link for that 2 days ago.

04/04, 10:17 AM

posted by:

johnnycanuck

Tata Consultancy Services and Computer Sciences Corp? Can the Dodge Nano R/T be far behind?

04/04, 10:20 AM

posted by:

mayer_ray_nagin

So what. My company just wasted 400 IT people. Of course we did it the smart American way, which means they cut the heads with no plan about how to get the work done, so then they told all the people they cut that in their last two weeks we need them to do a hell of a lot of overtime (free – these are salaried emoployees) and management was shocked that the layed-off employees told them to shove it.

What a freakin joke.

04/04, 11:01 AM

posted by:

manhertm

IT people are getting pretty expendable these days. In reality anybody who uses a PC can be an IT person at most places. They hardly ever do what they learned in college. My friend works as an IT person for Wachovia and he creditials were his job as a former cable guy, who laid some cable lines. :/

04/04, 12:43 PM

posted by:

jackjimturkey

Mayer: yep, that’s the way they do it.
The company i work for is heaquartered in scandanavia, and they have a different way of doing things.

04/04, 1:19 PM

posted by:

Need more oil for GM

The beginning of the end for Crapler.

04/04, 1:41 PM

posted by:

Scarface03

No disrespect to the IT people here, but I’ve long felt that the IT industry has been a good example of the fleecing of America.

IT people work in a world that is so alien to everyone else at the work place. They work at their own pace (who are WE to argue that it should be taking them less time), and they seem to write their own ticket.

I think corporate America in general will start to do more trimming of the IT fat…. especially if it continues to be cheaper to have someone in a New Delhi suburb at 3:00 in the morning take control of my computer with his broadband connection and download a network driver for me….

04/04, 2:01 PM

posted by:

Need4SSpeed

Scarface03, The IT industry is certainly changing. There’s no question about that. It’s also obvious that companies are going to try and outsource as much as they can to save $$. What’s being outsourced are many technical support positions and other jobs that aren’t as hands on. I read in a magazine that even Mconald’s was looking into setting up it’s ordering system to be outsourced. When you pull up to the speaker to order guess who you’re not talking to? The employees inside. Instead your placing your order with someone somewhere in like India and then they take your order and re-lay it back to the employees at the Mcdonalds. I guess it was supposed to somehow be quicker and more efficient. I didn’t quite get it. However someone in India can’t install new servers at the corporate office state-side. When computers break down and need to be replaced or have new hardware replaced someone oversees can’t do that as well. For those kinds of jobs in the IT industry simply cannot be outsourced. You are right in that it may need to be trimmed but it will never be completely outsourced.

04/05, 10:31 PM

posted by:

Catiadesigner

I personally know a few of the tech support guys at Chrysler, including one who was given 4 weeks notice and told to train his Indian replacement. I think its shocking, the tech support guy we used to have sat in the office with us and was always very busy helping people out until some idiot manager decided to move him 20 miles away and force him to work only to submitted help tickets that come through the system, now he’s only working at something like 30% of his previous capacity. Still now the idiot manager has his ticks in all the right boxes he will probably get a nice bonus for making his people work more inefficiently.
Its this sort of blind follow the “procedure” management style that is killing Chrylser as surely as the idiot execs that couldn’t manage their way out of a paper bag, the crappy products that have had everything good removed by the bean counters and the idiot UAW reps that are more concerned about keeping imbeciles in work than the health of the company.

04/06, 10:44 PM

posted by:

sharpie

There is more than one aspect to IT. Most of what other posters have referred to was desktop support like downloading a new application. That is easily outsourced because of broadband. However, there are actual hardware issues that do require a man on site. There is also networking. The maintenance part may run remotely because active directory made it simpler. However, the initial put up of the system again requires actual manual labor to make sure everything is hooked up correctly. Companies upgrade equipment as well as relocate all the time. That part of IT cannot be outsourced to India but it can be contracted out.

Once the desktop support is outsourced to India, companies no longer need a team of IT staff. They contract with several staff agencies to look for contractor for a specific task. They insulate themselves mostly from any wrongful termination claim as you are not on their payroll. This is the trend nowadays. So corporate USA has already transformed the industry 3-4 years ago and “trimmed the IT fat” so to speak. Wait till Microsoft stops supporting 2003 server and windows XP, there will be frenzy to get contractors to upgrade their system, then it will die down until the next great things.

 
 
You need to log in with your user name and password before you can leave comments.

    

Forgot your Password?

Don't have a user name yet? Simply fill in the form below and click the link provided in the
confirmation email. You must supply a valid email address to complete the registration process.

  
 
 
 
 
  • Login
  • About
  • Contact
Please note that you need to log in with your user name and password before you can leave comments.
  

login
cancel
Forgot your Password?
Don't have a user name yet? Click here to register now.

Simply fill in the form below and click the link provided in the confirmation email. You must supply a valid email address to complete the registration process.

  
submit
cancel
Leftlane is the leading source for automotive industry and vehicle news, new car research, future vehicle information, and reviews. Read by car shoppers, driving enthusiasts, autoworkers, executives, and investors, the website is updated throughout the day with the very latest auto news - as it happens.

Leftlane also provides consumers with accurate and media-rich information on every car currently on the market. In-market shoppers can review specs, read overviews, view high-resolution images, watch videos, and estimate pricing. No other automotive publication brings together the same degree of timeliness, thoroughness and accuracy as Leftlane.
 
submit
cancel