General Motors to Slash 10,000 White-Collar Jobs

Company will also cut the pay for most retained U.S. salaried employees through at least the end of the year.

General Motors said on Feb. 10 it would cut 10,000 white-collar jobs worldwide this year as part of a restructuring plan the struggling automaker submitted to the government in exchange for a bailout. GM said it expected the headcount reduction to reduce its global salaried workforce to about 63,000 in 2009 and would cut the pay for most retained U.S. salaried employees through at least the end of the year.

GM said the white-collar job cuts would vary by global region, "depending on the staffing levels in the region and market conditions." Of the 10,000 jobs targeted for elimination, about 3,400 will come from GM's U.S. workforce. The company will move swiftly to reduce the U.S. headcount through buyouts and other separation measures, with a May 1 deadline for the majority of the departures.

GM also announced a temporary pay reduction for a majority of U.S. salaried employees, beginning May 1 and effective through the end of the year, when it will be reviewed. "In the U.S., executive employees will have their base pay reduced by 10%, and many other salaried employees will see reductions of 3% to 7%," the company said.

"These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term viability," the automaker said.

GM has received $9.4 billion from the Treasury to avert collapse, including $5.4 billion on January 21. Under the bailout agreement, GM must submit a preliminary viability plan to the US Treasury by February 17. The final plan is due March 31.

Copyright Agence France-Presse, 2009

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish