Chrysler LLC will cut 1,000 employees from its worldwide salaried work force by Sept. 30, workers learned today.

The Auburn Hills automaker detailed the reduction in a memo sent to employees. In addition to the 1,000, Chrysler will cut its contract work force, but did not specify numbers.

"In response to the continued deterioration in the U.S. automotive market, an incremental reduction in both salaried headcount and supplemental resources is, unfortunately, necessary," Nancy Rae, executive vice president for human resources and communications wrote in the memo to employees.

Chrysler employs about 18,500 white-collar workers and 2,700 third-party contractors worldwide.

The company expects to meet its goal through a combination of retirements, buyouts and attrition. The packages offered to employees will be consistent those offered previously, the memo stated.

Last year, white collar workers were eligible for two early retirement deals. One allowed workers as young as 53, which had at least 10 years of service and met other requirements, to retire with full pensions and retiree health care. The other offered those 62 and older the same deal, plus either a vehicle voucher worth $20,000 after taxes or a $20,000 tax-free contribution to a retirement health care account.

If the company does not meet its goal, involuntary separation may be necessary, the memo said.

Chrysler spokesman David Elshoff confirmed a memo detailing the plans was sent to employees this morning.

Despite the actions, the company remains in a strong liquidity position, he said.

"Through June 2008, the company's liquidity position remained unchanged versus December 2007 as a result of aggressive programs to reduce working capital, the sale of non-core assets and volume-related manufacturing reductions," he said. "However ... further actions must be taken to improve our business and return to profitability."

Today's action marks the fourth time in 18 months that Chrysler imposed significant job cuts.

In February 2007, the company said it would eliminate up to 13,000 white- and blue-collar jobs as part of the "Recovery and Transformation Plan."

In November, Chrysler extended that program to another 12,000 employees, and announced it would cut a shift from five assembly plants.

Last month the automaker announced it would close a St. Louis area minivan plant and cut a shift from a nearby pick up truck factory, costing 2,400 workers their jobs.

via detnews