Chrysler is ahead of its own targets for its turnaround plan with the announcement that up to 1,100 salaried and 6,000 hourly workers have been cut from its workforce. This is only the first phase of job cuts in the three-year turnaround plan, which by 2009 will see Chrysler's workforce shrunk by 13,000 positions.

The announcement was made in an internal email that was sent to Chrysler staffers on Monday. In it, CEO Tom LaSorda assured staff that the reduction in employee numbers won't disrupt operations and we could see even more lay-offs very soon. An additional 400 blue-collar workers are still awaiting approval for applied buyouts or early retirement packages, but Chrysler spokesman Dave Elshoff said "there's no guarantee that they will be accepted this year."

These latest reductions leaves Chrysler with roughly 73,356 hourly and salaried employees all up, 100 less than what the turnaround plan stipulated for 2007. We hope the changes will make more than just a dent in rectifying the $680 million loss Chrysler suffered last year.

[Source: Detroit News]