Tuesday February 10, 02:20 PM
General Motors to slash 10,000 white-collar jobs
NEW YORK (AFP) - General Motors (NYSE: GM - news) said Tuesday it would cut 10,000 white-collar jobs worldwide this year as part of a restructuring plan the struggling automaker submitted to the government in exchange for a bailout.
GM said it expected the headcount reduction to reduce its global salaried workforce to about 63,000 in 2009 and would cut the pay for most retained US salaried employees through at least the end of the year.
"These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term viability," the Detroit, Michigan-based automaker said in a statement.
"GM outlined the need for the reductions in its restructuring plan submitted to Congress on December 2, 2008. The announcement this week begins implementation of this aspect of the plan."
GM has received 9.4 billion dollars from the Treasury to avert collapse, including 5.4 billion dollars on January 21.
Under the bailout agreement, GM must submit a preliminary viability plan to the US Treasury by February 17. The final plan is due March 31.
GM said the white-collar job cuts would vary by global region, "depending on the staffing levels in the region and market conditions."
Of the 10,000 jobs targeted for elimination, about 3,400 will come from GM's US workforce.
The company will move swiftly to reduce the US headcount through buyouts and other separation measures, with a May 1 deadline for the majority of the departures.
GM also announced a temporary pay reduction for a majority of US salaried employees, beginning May 1 and effective through the end of the year, when it will be reviewed.
"In the US, executive employees will have their base pay reduced by 10 percent, and many other salaried employees will see reductions of 3.0 to 7.0 percent," the company said.
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