Chrysler & GM to Cut More Jobs

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…

3 thoughts on “Chrysler & GM to Cut More Jobs

  1. Tom,
    Sorry to read the your job is in danger!

    Mr. AOW lost his job in January, in one of the first cut backs here in the D.C. area. No luck yet in finding another job, either.

  2. I’m very distressed to hear of your situation, Tom. My daughter works for a major pharmaceutical company; she and other employees were informed this past week to expect massive cuts in the next few months. Intellectually, we understand there are ups and down in the economy and that in the process, real people suffer significant setbacks. My daughter is fortunate in the sense that she’s single, no children, and therefore has a great deal more flexibility than if her situation were otherwise. But there is still a psychological trauma tied to what is happening, and it affects everyone.

    I have no idea how much, or even if any of this growing problem is associated with the possibility of a socialist president; I do imagine it is causing major corporations to evaluate their costs. Higher taxes, more regulation, diminished business opportunities; none of us can know where it will lead America’s employers — this unknown factor causes the most stress. I told my daughter to look at her situation as a new chapter; an opportunity to embark on a new journey with a new set of challenges. Words; just words. But, Tom, I am hoping for the best for you and your family. I’ll keep you in my prayers.

    Be well . . .

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