Click to play videoDetroit Chrysler, whose owner has been in talks to sell the automaker to General Motors (GM), announced that it will cut 25 percent of its salaried work force starting next month and warns 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 in the current economic climate.
Chrysler, which has about 18,500 white-collar workers, said 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.
Vice Chairman and President Tom LaSorda said sales projections for the rest of this year and in 2009 were not looking good, and he indicated that more factory closures could be coming.
Chrysler's sales were down 25 percent through the first nine months of the year, the worst decline of any major automaker.
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