Chrysler to Drop 401(k) Match

November 1, 2001 ( - Chrysler will suspend its already trimmed 401(k) matching contributions in a cost-cutting measure and also plans to increase the number of jobs targeted for elimination this year.

The company will shelve its match to employees’ retirement contributions at least through 2002. An earlier cost-cutting plan already trimmed the match from 100% to 60%.

The company, which will also suspend payments for family needs such as elder or childcare, outlined the plan in a memo distributed to employees yesterday, according to an AP report.

DaimlerChrysler’s Chrysler unit’s goal for 2001 was to reduce the salaried work force by 5,000 and the hourly work force by 13,000.

While, the automaker has exceeded the salaried work force goal by 100, its hourly worker job cut tally is shy of 210 workers. Now, according to the memo, still more workers will be offered early retirement late next month.

According Chrysler, those who earned less than $85,000 last year must be at least 52 years old to be eligible for the offer.

The company will, however, re-establish its tuition reimbursement program.

– Camilla Klein