DaimlerChrysler AG's Chrysler Group said Wednesday it would lay off about 13,000 workers under a restructuring plan aimed at cutting costs and returning its U.S. operations to profitability by next year.

The company also said it would close its Newark, Delaware, assembly plant, and reduce shifts at plants in Warren, Michigan, and St. Louis. A parts distribution center near Cleveland will be closed as well.

Under the plan, Chrysler Group will cut 11,000 production workers over the next three years, and 2,000 salaried jobs this year and in 2008.

Chrysler's parent, DaimlerChrysler AG, has said its earnings in the fourth quarter plunged 40 percent on weaker demand at the Chrysler unit, where sales fell 7 percent.

DaimlerChrysler's profit declined to 761 million dollars, or 74 cents per share, as revenue dropped to 53.7 billion dollars for the quarter.

The restructuring plan is another attempt by Chrysler to remake itself in the face of stiff competition from foreign brands and a shift in taste among American buyers, according to a report by The New York Times on Wednesday.

Source: Xinhua