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Tuesday, February 10, 2009
GM to Cut 10,000 Salaried Jobs
By Dunstan Prial
FOXBusiness
In an effort to further streamline its work force ahead of a government deadline for a restructuring plan, General Motors (GM) said Tuesday it will cut 10,000 salaried jobs.
The announcement comes a week after the largest U.S. auto maker said January sales plummeted 49% from a year earlier.
Detroit-based GM said it will slash its total number of salaried workers to 63,000 from 73,000 this year. About 3,400 of GM’s 29,500 salaried U.S. jobs are expected to disappear.
Most of the cuts should take place before May 1, according to a statement from the company.
Unlike earlier workforce reductions, this one will not include buyouts or early retirement packages, the company said.
GM told the government late last year as it accepted billions of dollars in aid that layoffs would be necessary if the company was to stave off bankruptcy and remain viable for the long-term.
A comprehensive restructuring plan is due on Feb. 17 under the terms of the $9.4 billion in low-interest government loans GM received late last year. GM is now seeking another $4 billion from the Treasury Department.
The restructuring has also forced the car maker to close factories and to negotiate with bondholders and the United Auto Workers union for concessions in an effort to prove to the government it can pay back loans.
GM said the latest cuts will vary by global regions depending on staffing levels and market conditions.
In addition, GM said it will cut the salaries of most U.S. workers beginning May 1 and continuing at least through the end of the year at which time the pay cuts will be evaluated.
The pay of U.S. executive employees will be cut by 10%, while other salaried workers will see cuts of 3% to 7%, GM said.






