Wednesday, October 10, 2007

Chrysler may cut 1500 jobs

Chrysler LLC, the third-largest U.S. automaker, may cut 1,500 salaried and contract jobs because of falling U.S. auto sales, people familiar with the strategy said.

As many as 415 of 8,300 non-union white-collar employees at the Auburn Hills, Michigan, headquarters may be let go, the people said. Chrysler may also shed one-third of its 3,000 workers hired on a temporary basis, said the people, who didn't want to be named because the plan isn't public.

The reductions would add to the 11,000 hourly and 2,000 salaried jobs Chrysler said in February would be cut over three years, before it was bought by private-equity firm Cerberus Capital Management LP. Chrysler is seeking health-care concessions from the United Auto Workers, and the union may strike if there's no contract agreement by 11 a.m. tomorrow.

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