Detroit, MI - Chrysler LLC has announced plans to cut up to 12,000 jobs in a massive overhaul of its North American factories.
The move aims to cut production costs and replace low-selling models with newer, more appealing models. Where the new models will be manufactured has not yet been announced.
The automaker said Thursday they will cut 8,500 to 10,000 hourly jobs by the end of this year, in addition to 1,000 salaried positions. They will also cut contracted employees by 37 percent and eliminate hourly and salaried overtime.
White-collar employees whose jobs are on the chopping block will be offered a package of early retirements and buyouts. It is unclear what benefits, if any, will be offered to hourly employees.
The plants slated to experience cuts include those in: Belvidere, Illinois; Toledo, Ohio; Brampton, Ontario; and Detroit and Sterling Heights, Michigan.
The company will remove four models whose sales have dropped in recent years: the Dodge Magnum, the convertible version of Chrysler PT Cruiser, Chrysler Pacifica and Chrysler Crossfire. Meanwhile, they will add four new models, including two hybrids.
"These actions reflect our new customer-driven philosophy and allow us to focus our resources on new, more profitable and appealing products," added Jim Press, Vice Chairman and President.
The job cuts come in addition to Chrysler's plan to eliminate 13,000 jobs over three years, announced last February.
The first of the layoffs already occurred on Wednesday, as approximately 300 workers were let go.
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