Chrysler LLC, the third-largest U.S. automaker, may cut 1,500 salaried and contract jobs because of falling U.S. auto sales, people familiar with the strategy said.
As many as 415 of 8,300 nonunion white-collar employees at the Auburn Hills, Mich., headquarters may be let go, the people said. Chrysler also may shed one-third of its 3,000 workers hired on a temporary basis, said the people who weren't named because the plan isn't public.
The reductions would add to the 11,000 hourly and 2,000 salaried jobs Chrysler said in February would be cut over three years, before it was bought by private-equity firm Cerberus Capital Management LP. Chrysler is seeking health care concessions from the United Auto Workers, and the union may strike if there's no contract agreement by 11 a.m. today.
'Part of these cuts are the normal review as new leadership evaluates talent and staffing levels,' said Pete Hastings, an analyst at Morgan Keegan & Co. in Memphis, Tenn. 'The other motive likely stems from the ongoing negotiations for cuts among the hourly UAW workers. It's all about everyone sharing the pain.'
The Detroit Free Press reported Chrysler's intent to cut white-collar jobs Tuesday. Chrysler spokesman Mike Aberlich declined to comment.
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