Chrysler to cut 25% of salaried workers

DETROIT (AP) — Chrysler LLC, whose owner has been in talks to sell the automaker to General Motors Corp., said Friday it will cut 25 percent of its salaried work force starting next month and warned that it will make more restructuring announcements soon.

CEO Robert Nardelli said the moves are being made as the company “works to find new ways to operate.”

Chrysler, which has about 18,500 white-collar workers, said Friday it also will cut a quarter of its contract employees — those who work for other companies under contract with the automaker.

About 5,000 people are likely to lose their jobs, although the company would not say how many contract workers it has.

Chrysler’s sales are down 25 percent through the first nine months of the year, the worst decline of any major automaker.