Chrysler Job Cuts Extended

Successful US automobile company, Chrysler has revealed that they will need to cut over 10,000 jobs over the course of the following year in a bid to cut back on costs in order to increase profitability over the coming year.

The mainstream US motor manufacturer announced the move following cost leaks and falling profitability over the last few quarters, with a view to reducing overall expenses more considerably over the coming twelve months.

The announcement took place just months after a takeover by Cerberus, a private equity firm that had been linked with a bid to increase its equity stake in the firm as a result of currently depressed share values.

Chrysler have expressed that they have been forced to cut down costs dramatically after experiencing a significant slide in sales, which they expected to continue over the course of 2008 at present rates, to boost bottom line profitability on behalf of the shareholders.

The proposed layoffs are in addition to 13,000 other jobs which are in the prossess of being cut before the end of this year, in a move that has seen the company offload a substantial chunk of its wage bill each year.

Continuing employees will have their contracted hours reduced and any overtime scrapped as Chrysler make desperate attempts to recover costs, on top of the number of employees set to lose their jobs.

Due to the increasing success of Japanese firms like Nissan and Toyota, Chrysler is just one of many US firms to lose out in recent quarters in both domestic and international export markets to the cheaper, more reliable Eastern models.

It remains to be seen whether the cost reductions will be sufficient to improve the profitability situation at Chrysler over the coming twelve months.

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