DETROIT (Reuters) – Chrysler LLC is targeting a 25 percent reduction in its salaried and supplemental workforce in response to the deepening slump in the U.S. auto industry amid declining consumer confidence.
“Due to the unprecedented conditions in the auto industry, both in our home and international markets, we are targeting a 25 percent reduction in our salaried and supplemental work force,” Chrysler Chief Executive Bob Nardelli said in a letter to employees on Friday.
Chrysler, which is in merger talks with larger rival General Motors Corp (GM.N), would have voluntary buyout programs for employees, starting in November, but expects to make involuntary cuts in staffing at the end of December.
Nardelli also said the company could not operate as it had in the past.
“In the near future, we will be making organizational announcements as a result of restructuring actions reflecting the need to find new ways to operate,” he said. (Reporting by Poornima Gupta; Editing by Lisa Von Ahn)