Chrysler announces massive layoffs

Automaker's restructuring will cost 13,000 workers their jobs

In the next three years, 13,000 Chrysler workers will lose their jobs under a wrenching restructuring announced Wednesday that eventually may lead to a DaimlerChrysler divorce.

The Chrysler unit of the German-American automaker announced its long-awaited plan at its Auburn Hills headquarters, saying it would cut 16 percent of the U.S. division’s worldwide work force, a move it hoped would return its U.S. operations to profitability next year.

The plan was announced only hours after Chrysler’s parent, DaimlerChrysler AG, said it was considering “far-reaching strategic options with partners” for Chrysler and that “no option is being excluded” as it reported a 40 percent drop in companywide profit for the fourth quarter. DaimlerChrysler’s U.S. shares rose nearly 7 percent by early afternoon.