Despite the House’s approval of a $25 billion loan program on Wednesday, Chrysler has announced that it is moving forward with further job cuts. While previous cuts have mainly targeted the automaker’s hourly workforce, the latest round of cuts will impact Chrysler’s salaried employees.
In all, Chrysler plans to lay off 300 salaried workers by the end of business on Friday. Employees unlucky enough to be receiving a pink slip will be given their walking papers today and tomorrow.
The latest job cuts are a direct result of Chrysler ’s July announcement to cut 1,000 more jobs. It remains unclear exactly how many job cuts the Michigan automaker has made since July, but it clearly hasn’t met its quota. As of June 30th, Chrysler employed 18,500 salaried workers worldwide, with 9,500 of those employees working in the Detroit area, according to Automotive News.
It was widely believed that the Federal loans would curtail some job cuts in the auto sector, but with Chrysler’s sales down more than 20 percent this year, further reductions clearly had to be made. It was also revealed early this week that Chrysler lost $400 million through the first eight months of the year, indicating further changes are needed.
