G.M. Offers Buyouts to 74,000 Workers

by Jarrett Martineau | February 12, 2008 at 08:45 pm

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The US economy is struggling and so too are its primary players. Auto giant General Motors has announced recored fourth quarter losses and is now looking to buyout "its entire unionized work force". Is this a strategy that will help turn the company around

A surprisingly tough fourth quarter and a gloomy outlook for the United States market prompted General Motors to offer buyouts Tuesday to its entire unionized work force.
G.M.’s latest “special attrition program” covers all its 74,000 hourly employees and underscores the challenges it faces in its turnaround effort.

G.M. said Tuesday that it lost $722 million in the fourth quarter and a record $38.7 billion in 2007, although the annual loss was inflated by a one-time charge of $38.3 billion to write down deferred tax assets.