Chrysler May Be Set to Cut White-Collar Work Force by 10%

Industry analysts said today that Chrysler Corp. will soon announce a program under which it will substantially reduce its number of white-collar workers to raise profitability levels.

Sources said the cuts could affect as much as 10% of Chrysler’s salaried work force, which is now about 31,000 workers.

Although Chrysler declined to comment on the specifics of such a program, company spokeswoman Karen Stewart hinted that an announcement could be made by company Chairman Lee Iacocca on Thursday at a weekly meeting of top company managers.

“Ongoing belt-tightening is simply a way of life at Chrysler as we look for ways to reduce cost,” Stewart said, calling any job reductions a “basic competitive action” necessary because of incentive costs and increased industry competition.