Chrysler exceeds goal for job cuts
Chrysler exceeds goal for job cuts
Chrysler exceeds goal for job cuts
detnews.com
1,100 salaried, 6,000 hourly workers let go in phase one of three-year turnaround program.
The Chrysler Group beat its targets for hourly and salaried job reductions during phase one of its three-year turnaround plan, the company said in a memo sent to employees Monday.
Chrysler, which lost $680 million in 2006 and is shedding jobs and sharply cutting vehicle production as part of its restructuring, has pared its salaried ranks by 1,100 through buyouts and retirement packages, exceeding its 2007 target by 100 jobs.
On the blue-collar side, the automaker surpassed its target by 125 jobs, eliminating 6,000 positions at plants in the United States and Canada this year.
"By selectively targeting our programs, we were able to achieve our goals without unnecessary disruption to our operations," said Chrysler CEO Tom LaSorda in the e-mail. "Even as we look forward to the exciting challenges ahead, we all appreciate and honor the contributions of our co-workers who have moved on."
The automaker is currently responding to an additional 400 blue-collar workers who applied for buyouts or early retirement. The requests are being considered on a plant-by-plant basis.
"There's no guarantee that they will be accepted this year," Chrysler spokesman Dave Elshoff said Monday. "We're working through that."
The latest reduction leaves Chrysler with about 73,356 hourly and salaried employees. The automaker wants to cut a total 11,000 blue-collar and 2,000 white-collar jobs by 2009.
Chrysler is currently amid a change of ownership.
Its parent company, DaimlerChrysler AG is expected to finalize a $7.4 billion deal this quarter with Cerberus Capital Management LP that would give the New York private equity firm an 80 percent stake.
Also last week, Cerberus won federal approval of its $1 billion purchase of Novi-based auto supplier Tower Automotive.The deal is part of Tower's plan to exit bankruptcy.
U.S. Bankruptcy Judge Allan Gropper also approved the auto supplier's reorganization plan, which was backed by all four classes of creditors.
Shares of DaimlerChrysler closed Monday down 31 cents at $94.44.
detnews.com
1,100 salaried, 6,000 hourly workers let go in phase one of three-year turnaround program.
The Chrysler Group beat its targets for hourly and salaried job reductions during phase one of its three-year turnaround plan, the company said in a memo sent to employees Monday.
Chrysler, which lost $680 million in 2006 and is shedding jobs and sharply cutting vehicle production as part of its restructuring, has pared its salaried ranks by 1,100 through buyouts and retirement packages, exceeding its 2007 target by 100 jobs.
On the blue-collar side, the automaker surpassed its target by 125 jobs, eliminating 6,000 positions at plants in the United States and Canada this year.
"By selectively targeting our programs, we were able to achieve our goals without unnecessary disruption to our operations," said Chrysler CEO Tom LaSorda in the e-mail. "Even as we look forward to the exciting challenges ahead, we all appreciate and honor the contributions of our co-workers who have moved on."
The automaker is currently responding to an additional 400 blue-collar workers who applied for buyouts or early retirement. The requests are being considered on a plant-by-plant basis.
"There's no guarantee that they will be accepted this year," Chrysler spokesman Dave Elshoff said Monday. "We're working through that."
The latest reduction leaves Chrysler with about 73,356 hourly and salaried employees. The automaker wants to cut a total 11,000 blue-collar and 2,000 white-collar jobs by 2009.
Chrysler is currently amid a change of ownership.
Its parent company, DaimlerChrysler AG is expected to finalize a $7.4 billion deal this quarter with Cerberus Capital Management LP that would give the New York private equity firm an 80 percent stake.
Also last week, Cerberus won federal approval of its $1 billion purchase of Novi-based auto supplier Tower Automotive.The deal is part of Tower's plan to exit bankruptcy.
U.S. Bankruptcy Judge Allan Gropper also approved the auto supplier's reorganization plan, which was backed by all four classes of creditors.
Shares of DaimlerChrysler closed Monday down 31 cents at $94.44.
