Chrysler Decides to Cut another 1500 Non-Union Jobs

By Brendan Moore


In a move that coincides with their ongoing negotiations with the UAW, Chrysler has decided that they will slash their non-union workforce by another 1500 positions to supplement the 2000 jobs it already committed to cut earlier this year. The timing of the announcement is regarded as excellent by observers since a large component of the current UAW negotiations is Chrysler’s desired reduction of the hourly work force represented by the union, and the corresponding reductions in the salaried and non-union workforce is seen as proof that Chrysler plans to spread the pain of cuts over the whole employee base.

Chrysler’s new cuts will further push forward their Recovery and Transformation Plan turnaround scheme, which the company announced in February 2007. That plan called for a major plant closure and a reduction of 13,000 workers, of which 11,000 are hourly worker positions. The UAW has 45,000 workers that work at Chrysler.

The recently-private Chrysler LLC is changing everything they can, as fast as they can, in order to turn around the floundering company. The changes so far have encompassed their senior leadership, future product plans, future manufacturing plans, future geographic markets, and labor agreements. The company is the first private auto manufacturing company in over 50 years in the U.S.

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at

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