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Posted: Wednesday, 23 July 2008 1:22PM

Cuts Coming At Chrysler

Southfield (WWJ)  -- The downturn in the economy will affect Chrysler workers.  A week after General Motors announced a restructuring,  Chrysler indicated it would cut one-thousand salaried jobs by the end of September. 

"To respond to the current market conditions, an incremental manpower reduction of 1,000 salaried employees by September 30, 2008 will be required," Nancy Rae, Chrysler's human-resources director, wrote in a letter to employees.

Chrysler says the cuts will be made through a combination of retirements, special programs and attrition.

In a statement Chrysler said it has "a clear, long-term strategy to build a profitable enterprise, even in this challenging economy." 

The company says through the first half of the year,  its "liquidity position remained unchanged versus December 2007 as a result of aggressive programs to reduce working capital, the sale of non-core assets and volume-related manufacturing reductions." 

Chrysler says "the signs of economic challenge continue for the U.S. market and as a result, further actions must be taken to improve our business and return to profitability."

The company adjusted its production capacity last year and announced last month is would indefinitely idle the St. Louis South Assembly Plant as well as reduce operations at St. Louis North Assembly Plant from two shifts to one shift.

 



 


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