Chrysler to cut 250 salaried workers, many today

BY TIM HIGGINS • FREE PRESS BUSINESS WRITER

Chrysler LLC is dismissing around 250 salaried workers to meet its goal of reducing its white-collar headcount by 1,000 by the end of the month, the company said Thursday.

In July, Chrysler said it wanted to eliminate 1,000 nonunion, salaried positions by the end of September.

David Elshoff, a Chrysler spokesman, said in a statement Thursday that around three-quarters of that goal had been reached through voluntary actions.

"The balance of our separations will be -- by necessity -- involuntary, and will take place by month's end, with the majority taking place on Friday," he added.

Chrysler's sales are down 24% so far this year, more than twice the decline of the rest of the industry.

"Chrysler is committed to maintaining the privacy and dignity of its people," Elshoff said. "For that reason, the company will not be publicly providing further details."

Chrysler also is getting rid of about 450 contract workers, the Free Press reported this month.

Over the past two years, the automaker has announced it wants to eliminate around 28,000 jobs, including 1,000 contract jobs cut as part of a decision announced last November.

The automaker has cut production and eliminated models as it tries to make itself into a smaller, profitable company.

In another cost-saving move, Chrysler is working to implement a workweek of four, 10-hour days at its Toledo assembly facilities.

Ed Saenz, a Chrysler spokesman, said the automaker is coordinating the change with its suppliers. "We're looking at how to implement the logistics," he said. It could be in place in four to six weeks.