Tag Archives: Layoffs

Fiat Chrysler Laying Off 1,300 Workers

A new Fiat Chrysler Automobiles sign is pictured after being unveiled at Chrysler Group World

By Bernie Woodall

DETROIT (Reuters) – Fiat Chrysler Automobiles said on Wednesday it is laying off about 1,300 workers indefinitely and ending one of the two shifts at its Sterling Heights, Michigan plant that makes the slow-selling midsize Chrysler 200 sedan.

U.S. sales of the Chrysler 200 were down 63 percent in the first three months of this year from a year earlier, as FCA has de-emphasized sales of the model which had been often sold to rental agencies.

The lay offs will be effective July 5.

The company did not say how long it would continue to make the Chrysler 200. In January, Fiat Chrysler Automobiles (FCA) Chief Executive Sergio Marchionne said the company would cease making the midsize sedan as well as the compact Dodge Dart, unless a partner could be found to keep the production going.

United Auto Workers Vice President Norwood Jewell said in a statement that the move was not unexpected, and expressed optimism that FCA will find jobs for the workers by making more trucks and SUVs.

“FCA is not the only company experiencing a slow market for small cars,” Jewell said. “On a bright note, there is a strong demand for larger-sized vehicles. The company has been planning to increase its capacity to build more trucks and SUVs. I believe that in the long term this move will be a positive one for our members and the company.”

It is one of the largest layoffs at a U.S. auto plant since the 2008-2009 recession, and there is widespread speculation that it will not be the end of production changes among U.S. automakers trying to adjust to consumer tastes that continue to shift from cars such as sedans and hatchbacks to SUVs and pickup trucks.

Workers at the Sterling Heights plant in suburban Detroit will return to work this coming Monday after a 10-week shutdown called to match consumer demand with production, the company said.

In 2015, passenger cars accounted for 44 percent of sales in the U.S. automotive market, down from 48 percent in 2014. The last year cars outsold SUVs and trucks in the U.S. market was 2012, when 51 percent of new vehicles sold were cars, according to industry consultant Autodata Corp.

General Motors Co and Ford Motor Co  in the past year have adjusted to the shift in the U.S. auto market, cutting jobs and production for some models while adding to those of others.

(Reporting by Bernie Woodall; Editing by Phil Berlowitz and Alistair Bell)

Sprint slashes 2,500 jobs to cut costs

(Reuters) – Sprint Corp has axed at least 2,500 jobs across six customer care centers and its Kansas headquarters as part of its plan to cut $2.5 billion in costs, a company spokeswoman said on Monday.

The job cuts, mostly in customer service, also include 574 positions at Sprint’s headquarters at Overland Park, Kansas, Sprint spokeswoman Michelle Boyd said.

Sprint, the fourth-largest U.S wireless carrier, has shut down call centers in Virginia, New Mexico, Tennessee and Texas and cut back jobs at its Colorado and Overland Park call centers, Boyd added.

The telecom company, which has kick started a turnaround plan, said last year it is looking at areas such as labor costs, network expenses, information technology and administrative expenses to reduce costs to the tune of $2.5 billion.

Investors have been concerned that the company, which is majority-owned by Japan’s SoftBank Group Corp, is burning cash at an alarming rate to acquire users and upgrade its network.

Sprint notified employees last week about the job cuts and severance benefits through email, Boyd said.

As of Jan. 1, Sprint’s workforce totaled 33,000 employees. The company has said that it planned to give layoff notices to employees before Jan. 30 as its severance package would be reduced after that date.

Sprint subscribers are increasingly using the Sprint Zone app and going online for their customer care needs and the jobs cuts were made in response to that trend, Boyd said.

Sprint said in November 2014 that it would fire 2,000 employees. In October 2014, the company launched a previous round of layoffs and shed about 1,700 jobs.

Boyd declined to comment on whether the company plans to slash more jobs in coming weeks.

The Kansas City Star first reported news of the job cuts on Monday.

Shares in Sprint, which have fallen about 21 percent this year, were down about 10 percent at $2.59 in afternoon trading.

(Reporting by Malathi Nayak in New York and Abhirup Roy in Bengaluru; Editing by Savio D’Souza, Alistair Bell and Meredith Mazzilli)