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GM to axe 10,000 salaried jobs, cut execs' pay

by Mary Richard | February 10, 2009 at 06:21 am

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In a move to cut costs, GM has announced its latest step to pare down its operations ahead of a present restructuring plan. In the United States, approximately 3,400 of GM's 29,500 salaried employees will be cut.

NEW YORK, Feb 10 (Reuters) - General Motors Corp (GM.N) said it would cut its global salaried workforce to about 63,000 from 73,000 during 2009 and impose pay cuts for the remainder of its salaried workforce.

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

GM executives have said the company is looking for deeper and faster cost-cutting under the restructuring plan that will be submitted to the US treasury under terms of its $13.4 billion bailout.

GM started offering buyouts to 62,000 union workers last week and is in talks with the United Auto Workers about trimming benefits. People familiar with those buyouts said the automaker is targeting more than 10,000 union jobs and expects more than half that number to accept. Most non-union workers will see pay cut at least 3 percent.

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Barry ORegan

at 06:38 on February 10th, 2009

Guess that bailout money, aint gonna be much use to the laid off now is it?

Rob Walker

at 06:46 on February 10th, 2009

woodpeck

at 11:12 on February 10th, 2009

now the execs are getting affected? HUGE.

altrugon

at 11:21 on February 10th, 2009

Nice strategy, once they get that bailout there will be more money to put in their pockets instead of worker's salaries.

You want the bailout? Fine, here is the deal:

50% of your new cars will be 100% green energy.
From the other 50%:

At least 25% must be hybrid cars.
The rest of your production can be use for the models that you are already producing. However you must reduce this last 25% of production to zero in a period of 5 years.

They have been producing the most polluted cars for years, it's time for a change.