Layoffs, early retirements and buyouts will begin in November
>
> October 24, 2008 - 11:07 am ET
> UPDATED: 10/24/08 2:12 p.m. EDT
>
>
>
> Chrysler LLC plans to cut its salaried workforce by 25 percent starting > next
> month, the company said today.
>
> A Chrysler statement did not identify how many jobs the automaker is
> eliminating, but spokesman Michael Palese said the cuts will total 25
> percent of the company's salaried workforce.
>
> Chrysler, according to its most recent figures, employs about 17,332
> salaried workers, so the cuts could total more than 4,300 jobs.
>
> The cuts will start with voluntary retirements and buyout programs, but > will
> include layoffs by the end of the year. New buyout programs will include
> "enhanced benefits," a Chrysler statement said, including cash and
> new-vehicle vouchers.
>
> The company also told employees it will "cut back on all discretionary and
> overhead expenses and reduce capital expenditures not connected to major
> product programs."
>
> Chrysler owner Cerberus Capital Management LP, according to numerous
> reports, is in the midst of negotiating a possible sale to General Motors.
> Cerberus also has engaged in discussions with Nissan and Renault about a
> partnership arrangement with Chrysler, according to the reports. >
> Chrysler just completed a reduction of 1,000 salaried jobs last month. And
> yesterday, the automaker said it would close its assembly plant in Newark,
> Del., and cut a shift at its Toledo Jeep operations, resulting in 1,825 > job
> losses.
>
> Chrysler has announced 35,000 total job cuts since February 2007, > according
> to Bloomberg News.
>
> GM also is expected to announce another round of significant salaried job
> cuts by the end of the year.
>
> "Chrysler and General Motors have to do whatever is possible to stem the
> outflow of cash from the organization," said Dennis Virag, president of
> Automotive Consulting Group in Ann Arbor, Mich., told Bloomberg. "It's not
> surprising that drastic actions are being taken because these are drastic > times.'"
>
> 'Truly unimaginable times'
>
> CEO Bob Nardelli released a statement attributing the latest job cuts to > the
> fastest contraction ever in auto industry sales.
>
> "These are truly unimaginable times for our industry," Nardelli's > statement
> said. "We continue to be in the most difficult economic period most of us
> can remember."
>
> "The combination of troubled financial markets, difficult credit, volatile
> commodity prices, the housing crisis and declining consumer confidence
> continues to weigh on the economy. Never before have auto industry sales
> contracted at such a fast rate. Throughout this challenging time for our
> industry and our company, we have continued to face the realities of our
> business environment, and working as a team, we have been right-sizing our
> organization to become as competitive as possible."
>
> PRESS RELEASE: Response to Query Regarding Additional Salaried Employee
> Workforce Reductions
>
> Auburn Hills, Mich., Oct 24, 2008 - In a letter to employees, Chrysler LLC
> Chairman and CEO Bob Nardelli today announced that Chrysler would take
> additional salaried and supplemental workforce reductions beginning in > November 2008.
>
> This adjustment to workforce levels is in addition to previously announced
> actions, and will be accomplished through a combination of socially
> responsible programs, including voluntary retirements and - in order to
> broaden the eligible group - salaried employee buyouts. These new programs
> will feature enhanced benefits, including both cash and new-vehicle > vouchers.
>
> Details on the new voluntary programs will be made available to Chrysler
> salaried employees in the next two weeks (Oct. 24-Nov. 5, 2008). > Involuntary
> separations will also take place by the end of December.
>
> The Company today also told employees that in order to more diligently
> control spending, it would cut back on all discretionary and overhead
> expenses and reduce capital expenditures not connected to major product > programs.
>
> Nardelli added that Chrysler would make additional organizational and
> restructuring announcements in the near future as the Company works to > find
> new ways to operate.
>
> The following is attributed to Bob Nardelli, Chairman and CEO, Chrysler > LLC:
>
> "These are truly unimaginable times for our industry. We continue to be in
> the most difficult economic period most of us can remember. The > combination
> of troubled financial markets, difficult credit, volatile commodity > prices,
> the housing crisis and declining consumer confidence continues to weigh on
> the economy. Never before have auto industry sales contracted at such a > fast
> rate. Throughout this challenging time for our industry and our company, > we
> have continued to face the realities of our business environment, and
> working as a team, we have been right-sizing our organization to become as
> competitive as possible."
>
>