According to an email this morning and later by news reports, Chrysler is going to cut 25% of its salaried and contract workers by the end of the year. The cuts are going to start at the end of next month.
From another news report, GM is going to do much the same. Not sure about how many will be affected, but it will be painful nonetheless.
Both companies are accelerating their plant closings, mostly due to the sales slump.
Needless to say, I’m not a happy camper because this comes on top of some news that I received on Monday. The project that I had been working on for the past seven months was canceled. All the work, effort, and travel to Germany disappeared in minutes. I was then assigned back to my old supervisor, which is OK, but everything happened very quickly. The assignments and evaluations that I had with my current (now past) supervisor will have to be redone, and that is a long process.
And yes, if the cuts happen strictly by seniority like they are supposed to and my department is affected, I can lose my job.
We have many different theories about why this is happening beyond the obvious sales slump. This one seems to be the most plausible:
I read a couple of news articles that stated that “Chrysler management is closely following the negotiations” between GM and Cerberus (Chrysler’s owners). What this is telling me is that the cuts are to lessen the number of bodies that would need to go if the two companies merge, or GM buys Chrysler outright. It’s also telling me that Chrysler management isn’t involved in the negotiations. I’m still trying to figure out what GM gets out of the deal, but I know what Cerberus would get: The rest of GMAC and discards a bad investment. All I can surmise is that Cerberus is strong-arming GM to take the deal.
There are some theories that a Chinese or Asian company would buy Chrysler, but from news reports, those talks aren’t very far along.
Hopefully, next week will reveal more details about what is going on. But there is one part of that email that makes me wonder if they have a clue as to the tremendous pressure they are putting on their employees:
… During these tumultuous times, I encourage you to help each other to keep a sharp focus on the important tasks at hand.
Thank you for your continued dedication.
A bit hard to keep focus when you are looking over your shoulder for HR to come looking for you with a pink slip in their hand…
I don’t know how much I’m going to be visiting everyone’s blogs this weekend. Lots of honey-dos and now spiffing up the resume. It’s going to be a long weekend…