Chrysler has accounted its plans to cut its white collar workforce by about 25% by the end of the year. With sales declines and too few small, fuel efficient models, Chrysler is busy reducing its workforce and reducing redundancies within its model lineup.
The 20 percent cut to Chrysler’s workforce will result in about 5,000 salaried workers. These employees will be offered buyouts and early retirement packages. Some of the cuts will also include contracted employees, which will not be offered any packages. These employees have until the end of November to decide on whether they will want to accept the offer. Should many of these workers fail to accept these offers, Chrysler will begin laying off workers through December, which Birmingham Chrysler dealers fear will tarnish the brand further.
Chrysler has found itself in an increasingly difficult spot. With sales volume down, production as well as its workforce has to be reevaluated to ensure operations are in-line with demand. While workers at some of Chrysler’s production facilities have already faced layoffs, the latest round of layoffs affects only white collar, non-union employees.
These job cuts are announced on the heels of reported talks with General Motors about a potential buyout or merger, which Chrysler Jeep Dealership St Louis and others realize will have a tremendous effects on Chrysler’s vehicle lineup. Nissan and Renault may also be involved in talk with the automaker.
With the tightening credit market and decreasing new car sales, Chrysler has faced huge challenges and losses, while Jeep Dealers Midland TX and many other dealers have been craving smaller, more fuel efficient offerings. Chrysler has faced an even greater sales decline than Ford and GM, and such declines are showing no sign of letting up.
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More on current Chrysler corporate news here.