Chrysler to lay off 300 salaried employees by end of business Friday
09/25/2008, 1:34 PM
By Drew Johnson
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.
09/25, 1:40 PM
posted by:
jumpoffit
if the Detriot Lions can finally fire their CEO Matt Millen inorder to make changes and improve their business, why doesn’t Chrysler fire their CEO ?
09/25, 4:57 PM
posted by:
johnnycanuck
I just can’t see the end of this. Is there one bright sales spot anywhere in their lineup? The Challenger will do well, but it’s far too much of a niche vehicle to have any significant impact. The new Ram may be a great truck, but it’s up against other great trucks in a struggling segment. Everything else is basically carryover from last year. They’re in deep, and I don’t believe Cerberus has the patience to put up with the bleeding too much longer.
09/25, 5:43 PM
posted by:
e36m
GM is hiring!
hahahahahahhahahahahahahhaha
09/25, 6:37 PM
posted by:
autonut
I believe that Cerberus has the patience to do something. They are in the process of completing their control of corporation. Based on CEO’s Stephen Feinberg’s interviews (he is not running for political office i imagine he can be somewhat trusted) he is in for saving the brand and piece of Americana, not necessarily for the buck. Something in some shape will be saved, not all.
09/25, 10:42 PM
posted by:
howsmydriving
This layoff will go down in history as “The Chrysler 300.”
09/26, 7:59 PM
posted by:
The Stig
autonut:
I’m sure Cerberus’ shareholders are beyond thrilled to hear their money is used to save a chunk of Americana and not necessarily to make a buck.
09/27, 2:42 PM
posted by:
Get Real
I can’t believe after years of poor quality cars the Big 3 are really going to die off.