Chrysler Group Announces Next Initiative in Turnaround Plan; Workforce Reduced by 26,000 Over Next Three Years
Chrysler Group announced the next major part of its turnaround plan to regain competitiveness under difficult business circumstances. Over the course of the next three years, the Chrysler Group will reduce its workforce by approximately 20 percent. The reduction will be approximately the same percentage for both salaried and hourly employees. This will affect about 26,000 people-19,000 hourly and 6,800 salaried (including 1,800 supplemental employees)-through a combination of retirements, special programs, layoffs, and attrition. It is expected that 75 percent of the overall reduction will be achieved in 2001. This is being done within the framework of existing union contracts. A series of manufacturing actions will be necessary to attain the objectives, including reducing shifts and line speeds, as well as idling selected plants to adjust production capacity at Chrysler manufacturing operations around the world. At this point in time, the company plans to reduce excess capacity by idling six manufacturing facilities over the next two years. For more information visit http://www.daimlerchrysler.com.
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