Oct. 9 (Bloomberg) -- Chrysler LLC, the third-largest U.S. automaker, may cut 1,500 salaried and contract jobs because of falling U.S. auto sales, people familiar with the strategy said.

As many as 415 of 8,300 non-union white-collar employees at the Auburn Hills, Michigan, headquarters may be let go, the people said. Chrysler may also shed one-third of its 3,000 workers hired on a temporary basis, said the people, who didn't want to be named because the plan isn't public.

The reductions would add to the 11,000 hourly and 2,000 salaried jobs Chrysler said in February would be cut over three years, before it was bought by private-equity firm Cerberus Capital Management LP. Chrysler is seeking health-care concessions from the United Auto Workers, and the union may strike if there's no contract agreement by 11 a.m. tomorrow.

``Part of these cuts are the normal review as new leadership evaluates talent and staffing levels,'' said Pete Hastings, an analyst at Morgan Keegan & Co. in Memphis, Tennessee. ``The other motive likely stems from the ongoing negotiations for cuts among the hourly UAW workers. It's all about everyone sharing the pain.''

The Detroit Free Press reported Chrysler's intent to reduce white-collar jobs today. Chrysler spokesman Mike Aberlich declined to comment.

August Signal

The additional cuts were foreshadowed in August by co- President Tom LaSorda after the purchase by Cerberus.

``If there's economic or other factors that make us take another look at it, we will,'' LaSorda said when asked if the company would make further cuts. U.S. auto industry sales and Chrysler's have dropped in tandem in each of the past four months.

U.S. sales of Chrysler, Jeep and Dodge vehicles declined 5.4 percent in September as the U.S. industry fell 2.9 percent.

The initial job reductions were announced the same day DaimlerChrysler AG Chief Executive Officer Dieter Zetsche said he would consider all options for the future of the Chrysler unit after a $680 million loss in 2006.

Three months later, the German automaker now known as Daimler AG agreed to sell an 80.1 percent stake in Chrysler to Cerberus for $7.4 billion.

Contract workers include engineers who work for outside agencies hired by the automaker.

To contact the reporter on this story: Jeff Bennett in Southfield, Michigan, at jbennett17@bloomberg.net

Last Updated: October 9, 2007 12:39 EDT