Chrysler to cut 1,000 jobs, liquidity ‘unchanged’

Automotive News | July 23, 2008 - 2:00 pm EST

DETROIT (Reuters) — Chrysler LLC said on Wednesday it plans to cut 1,000 salaried jobs by the end of September to slash costs and survive a deep industry downturn.

The privately held automaker, now controlled by Cerberus Capital Management, also said its liquidity position through June had remained "unchanged" since December 2007 "as a result of aggressive programs to reduce working capital, the sale of non-core assets and volume-related manufacturing reductions."

The automaker has said it ended 2007 with $9 billion in cash.

Chrysler employees were informed of the latest job cuts through a staff memo sent by Nancy Rae, Chrysler’s chief spokeswoman and head of human resources.

"To respond to the current market conditions, an incremental manpower reduction of 1,000 salaried employees by September 30, 2008, will be required," Rae said in the memo, according to a company spokesman.

The job cuts will be achieved through a combination of retirements, special programs and attrition, the company said.

Chrysler, pushing to turn around its operations nearly a year after being acquired by Cerberus, previously said it would close a minivan plant and eliminate one shift at a Dodge Ram truck plant in Missouri to cut excess capacity.