LONDON (CNNfn) - DaimlerChrysler is set to announce some 20,000 job cuts at
its troubled U.S. business Chrysler, according to a published report on
Monday.
Up to 6,000 of Chrysler's 30,000 white collar jobs will probably disappear,
and up to 15,000 of its 95,000 manufacturing workers and about six of its 41
plants, the Wall Street Journal said, citing people familiar with the firm's
thinking.
The bulk of the staff cuts will come through attrition and early retirements
in a bid to comply with Chrysler's union contracts, the newspaper reported.
The job reductions will take place over a three-year time frame. A Daimler
spokesman could not immediately be reached for comment.
Dieter Zetsche, the division's new chief executive, is expected to make the
announcements in February. Zetsche was appointed to regain control of the
loss making investment in November, when DaimlerChrysler ousted Chrysler
head James Holden and other top executives.
Zetsche has played the fixer role before, when he was parachuted into
Portland, Oregon, to turn around the DaimlerChrysler's Freightliner unit,
which was losing money. Zetsche sacked 25 percent of Freightliner's
workforce and put the truck maker back on the road to profitability.
Chrysler is losing more than 1 billion a quarter, the WSJ said. Last month,
Zetsche ordered Chrysler's suppliers to reduce the cost of their contracts
with the world's fifth-largest automaker by 5 percent.
DaimlerChrysler has appointed 1,500 engineers to work with the suppliers to
cut a further 10 percent out of Chrysler's $40 billion annual materials
budget.
The automaker also sold a $7.1 billion bond earlier this month to provide
cash for its Chrysler unit.
DaimlerChrysler shares rose 0.8 percent to 49.36 in early Frankfurt trade.
Greg
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