Cerberus may cut 10% of its workforce
That Chrysler continues to struggle isn't exactly news. As a whole, the auto industry is tanking and cars just aren't moving off dealer lots. Chrysler initially responded by offering buyouts to its entire workforce, and 25% off all its salaried workers took the company up on the offer. Earlier this week, we learned that the ailing Auburn Hills empire will get cozy with Italian automaker Fiat. What we haven't heard as much about, however, is the health of Chrysler's parent company, Cerberus Capital Management. Like many investment institutions, the three-headed dog is looking to save money, and some of that cash may come at the expense of its workforce. Cerberus has 275 workers around the globe, and up to 10% of those employees will likely face the axe. The private equity firm has struggled with Chrysler, GMAC and Chrysler Financial, but anyone watching the stock market knows the rest of the business world hasn't really fared much better. Blackstone, which also bid on Chrysler back in 2007, is cutting 5% of its workers, and the Carlyle group 10%. The Cerberus job cuts are only a fraction of the bloodletting Chrysler has had to endure over the past two years, but at least it shows that the Pentastar isn't the only one making the sacrifice.
[Source: Automotive News subs req'd]
Reader Comments (Page 1 of 1)
Jake B 7:32PM (1/22/2009)
Is under that trap door where they put all of the government bailout money?
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TomdeTomTom 7:38PM (1/22/2009)
Well said.
I don't feel a bit sorry for them.
firstplace 8:05PM (1/22/2009)
they need to go out of business before they convince that panel of old fools in congress to hand out more money to a sinking ship.
tankd0g 7:41PM (1/22/2009)
"Cerberus has 275 workers around the globe, and up to 10% of those employees will likely face the axe."
So, 27.5 people out of a job? Who's the guy who was getting half a paycheck?
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gforce 8:00PM (1/22/2009)
They only have 275 employees around the globe? With offices everywhere from New York to London to Dubai, they must be busy folks indeed.
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dougjp 9:54PM (1/22/2009)
A story about 27.5 people being let go from their jobs? The economy must have already turned around for a news story to exist at all about that small a number. Better get out and buy shares, the market should be improving by leaps and bounds....
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Will 7:08AM (1/23/2009)
If they're cutting 27.5 workers, they literally are going to need an axe.
Don 10:05PM (1/22/2009)
275 workers around the globe? Must be multi-taskers.
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JasonD 6:48AM (1/23/2009)
Cerberus sure does a lot with just a little...
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moyoi 10:01AM (1/23/2009)
That's what she said...