World

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

by Blue Crush | February 10, 2009 at 06:21 am

315 views | 55 Recommendations | 9 comments

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.

0 See all footage | View Slideshow

Share: email story | add to any | | facebook | stumbleupon

recommend This comment thread is now closed

Barry Artiste

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.

René

at 11:21 on February 10th, 2009

GM is taking $1billion of the money they just got to Brazil. Now why is that?

Amy Judd

at 11:58 on February 10th, 2009

It's sad that so many jobs have to go especially in an industry that was once thriving so well.

Roy C

at 12:54 on February 10th, 2009

Foreign automakers don't have to pay their retirees medical costs. The gov't does that.

Foreign automakers in the US have younger labor forces working in less expensive areas of the country and get huge tax breaks because they located there.

GM does great in Europe. Opal is a premium brand and is thought of as a Geman car, to boot.

Ford does really well as well when the playing field is level.

Tina Kells

at 13:18 on February 10th, 2009

The cuts in pay are not just for executives. Executives will see the biggest cut, 10%, but other employees are at risk for pay cuts between 3% and 7%. The pay cuts are intended to be temporary.

About 3,400 of GM’s 29,500 U.S. salaried workers will be dismissed by May 1, the Detroit-based automaker said in a statement. U.S. salaries will be cut temporarily by 10 percent for executives and by 3 percent to 7 percent for most others. GM said it’s reviewing salaries and benefits abroad.