GM to Slash 1,600 White-collar Jobs by May 1

April 20, 2009
The layoffs are part of GM's plan announced in February to shed 3,400 white-collar jobs this year in the U.S.

General Motors, racing to restructure to avoid collapse, plans to cut 1,600 white-collar jobs in the next 10 days, GM spokesman Tom Wilkinson said on April 20.

The layoffs are part of GM's plan announced in February to shed 3,400 white-collar jobs this year in the U.S., he said. "We think we'll complete most of that by May 1," he said.

President Barack Obama's administration has given GM until June 1 to present an aggressive restructuring plan, after the government, which has pumped $13.4 billion in public aid into the nation's biggest automaker, rejected its previous restructuring plan in late March.

In an update on its progress in developing the restructuring plan, GM reiterated on April 17 that it wanted to avoid filing for bankruptcy protection but was preparing for it nevertheless. GM management says it needs $5 billion in additional public funds soon to survive.

To date, GM has reduced worldwide headcount this year by 47,000 jobs, including about 26,000 outside the United States, bringing its global workforce to 200,000.

In the U.S., in addition to white-collar jobs, GM has slashed 7,000 factory jobs this year in a voluntary departure program, Wilkinson said.

Copyright Agence France-Presse, 2009

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!