FARMINGTON HILLS, Mich. — Chrysler Financial recently announced it is restructuring its business operations to better align to the current market environment.

This restructuring includes a reduction in the company's work force of about 9 percent. Officials attributed this need for realignment to declining vehicle sales, tight capital markets and the decision to shift Chrysler Group subvented retail business to GMAC.

Staff cuts began last week in each of the company's eight business centers and at the corporate headquarters in Farmington Hills, Mich.

Basically, all U.S. retail credit acquisition activities will be consolidated into the Great Lakes Business Center in Auburn Hills, Mich. In addition, the company officials announced the closure of their Kansas City Customer Contact Center in Overland Park, Kan., effective Aug. 31, 2009.

"While these were difficult decisions to make, they are necessary in light of our declining portfolio," explained Tom Gilman, chairman and chief executive officer of Chrysler Financial.

"We have made every effort to limit the number of job losses and to ensure the affected employees are treated fairly," he added.

As a standalone financial services organization, the company will continue to offer dealership insurance and consumer retail financing products, in addition to servicing and collecting its ongoing loan portfolio of about $45 billion, officials noted.

"Chrysler Financial will continue to evaluate its business operations to ensure operating expense targets are in proper alignment with revenue opportunities," executives concluded.