Chrysler announces 25% of salaried jobs to be cut by year end

Ongoing merger negotiations, record financial losses and the worst sales figures in recent history have all been pointing to serious trouble for Chrysler, LLC, and today CEO Bob Nardelli said in a letter to employees that the company will cut 25% of its workforce - or about 4,300 salaried jobs - beginning in November, only strengthening the case against its future.

More details on the layoffs will be forthcoming in the next few weeks as employees are offered packages between today and November 5. All of the 4,300 jobs are expected to be cut by the end of December, however, including what Chrysler euphemistically refers to as 'involuntary separations.'

Chrysler says it will pursue as many voluntary retirements and buyouts as it can in addition to layoffs, offering 'enhanced benefits' such as cash and vouchers for new cars.

Other cost-cutting measures are going into place as well, such as cutting discretionary spending and reducing "capital expenditures not connected to major product programs." The latter may hint at model cuts, or at least delays in new model releases, for vehicles the company deems 'non-major'.

Nardelli also said in his letter to employees that Chrysler would "make additional organizational and restructuring announcements in the near future as the Company works to find new ways to operate." While it's not clear yet what that might mean for Chrysler, it appears the merger are more than mere rumor and speculation, though it's not as clear that Chrysler will 'still be here' - at least not in its current form - as President Jim Press stated earlier this week.