Chrysler is the latest big American company to fire workers in hopes of staying afloat in this recession.
The country's number three automaker announced today that as part of its financial viability plan it will cut another 3,000 jobs. Since January 2007, the company has cut 32,000 positions or 37 percent of its workforce. These latest cuts will bring that number to 35,000.
Chrysler's cuts come despite the $4 billion in loans the company has received from the federal government. Like Chrysler, top U.S. automaker General Motors and French car company Peugeot have also received billions in government aid but still recently slashed thousands of jobs.
Peugeot plans to cut its work force by up to 12,000 jobs, despite a recent $4 billion bailout by the French government, while GM annouced on Monday, Feb. 9, that it would cut 10,000 jobs in May and continue global layoffs through the year. Mid-level salaries, the company said, would also be reduced by 3 to 7 percent, and executives would take 10 percent pay cuts.
GM, which has struggled with a severe drop in car sales, has received $9.4 billion in federal assistance and expects to get $4 billion more later in February, when it submits a report to Congress on how the company plans to be a viable business.
In the past few months, GM has been under scrutiny after appealing for and receiving a $13.4 billion bailout. The company, along with Ford, decided to sell its jet fleet after CEO Rick Wagoner arrived in Washington in November on a private plane while pleading for taxpayer money. All three automaker CEOs flew in corporate jets to Capitol Hill.
Despite the claims of scaling back, GM served as a corporate NFL sponsor at the Super Bowl, continuing its tradition of offering the newest Cadillac to the MVP and providing courtesy vehicles for VIPs.
GM has already cut back on benefits and payroll of salaried workers since November. The company is still in talks with the United Auto Workers union about worker buyouts in an attempt to decrease outstanding debt.
A cheap night at home in front of the television may have new appeal for cost-conscious consumers these days, but that hasn't made television manufacturers and their employees immune to the recession.
Pioneer, known for making plasma televisions as well as other products, will shutter its TV business in favor of focusing on car electronics. The Tokyo-based company, which has projected a record loss for 2009, will cut 10,000 jobs around the world, including 4,000 temporary employees.
Fellow Japanese company Panasonic Corp., the electronics giant known for flat-screen TVs as well as digital cameras, announced in early February that it would slash 15,000 jobs and close 27 plants worldwide.
Panasonic, which saw its third-quarter sales drop by 20 percent, announced its first annual loss in six years.
"The current financial crisis originated in the United States has spread across the world and the company's outlook of the business environment has been extremely uncertain," the company said in its financial forecast.
In December, consumer electronics titan Sony kicked off the recent spate of electronics manufacturer layoffs with 16,000 job cuts, including 8,000 part-time and seasonal workers.