Tech & Biz

Chrysler to Cut 25% of Workforce

by Jarrett Martineau | October 24, 2008 at 11:39 am

225 views | 5 Recommendations | 2 comments

Add Chrysler to the list of major corporations getting set to hack and slash their workforces, due to the economic downturn.

Just one day after announcing plans to cut 1,825 jobs, Chrysler LLC announced Friday that the company will cut 25% of its salaried workforce -- bring the total jobs lost to more than 5,000.

Company CEO Bob Nardelli announced the cuts in a letter to employees, saying the automaker will make the reductions through a mix of voluntary buyouts, retirement packages and layoffs. Chrysler employs about 18,500 white-collar workers.

But even more people stand to lose their jobs with the company. Chrysler also said Friday it will cut about 25 percent of its contract employees.

Friday's announcement came just one day after the company said it will cut 1,825 jobs by eliminating one shift at a Toledo, Ohio, Jeep plant and accelerating the closure of its sport utility vehicle factory in Newark, Del..

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Jennings David L

flagged this story as Good Stuff

at 07:24 on October 25th, 2008

Jarrett Martineau, I like this story. It's good stuff. This is another sign that the recovery will be a long way off. Anytime is a bad time to be laid off but this time of year, just before the holidays, will be difficult for those affected. There is the rippling effect of local businesses that will feel the impact of the layoffs.