Chrysler could cut beyond buyouts

Chrysler officials have not ruled out the possibility of layoffs at the Auburn Hills automaker if they fail to get enough salaried workers to leave with voluntary buyouts over the next month.

Chrysler Chief Executive Officer Bob Nardelli has warned employees to expect a tough 2008, leaving open the possibility of job cuts even beyond the 25,000 already announced, a figure that include the buyouts.

"It's never an easy decision to shrink a company, but we felt we needed to get it right-sized," Nardelli reportedly told employees during an internal company broadcast. "We didn't want to be chasing costs throughout the year. We hope we were aggressive enough and, if not, we will adjust."

Nardelli's statements were first reported by the Dow Jones news operation. A Chrysler spokesman confirmed that Nardelli addressed workers.

At this point, Chrysler officials do not anticipate layoffs, but aren't sure they can be avoided either, people familiar with the situation said. They added that the decision would be based upon the take rate of the buyouts.

Buyout offers similar to those offered to salaried employees earlier this year are again on the table.

The first wave of this new set of buyouts is aimed at salaried workers 62 or older and with 10 or more years of service. Their package includes three months' pay and a $20,000 car voucher. Their last day will be Friday, said Chrysler spokesman David Elshoff. More at Detroit Free Press