DETROIT — As talks over the potential sale of Chrysler continued, the struggling automaker said it will slash 25 percent of its salaried work force and make further cuts to deal with a continued downward spiral in U.S. auto sales.

Negotiations for Chrysler's sale or merger, which involve majority owner Cerberus Capital Management LP, General Motors Corp. and the combined Nissan Motor Co.-Renault SA, were to continue into the weekend. But they are snagged on items such as tax liabilities, tight credit and the slowing economy, according to a person briefed on the talks.

The person, who asked not to be identified because the discussions are private, said multiple parties remain involved in the complex talks, which include several possible configurations such as the sale of Chrysler in its entirety, or a partial sale of the company.