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.
