GM to Cut 14% of its Workers
DETROIT — General Motors Corp., staying afloat with $13.4 billion in federal rescue loans, announced Tuesday that it is cutting its worldwide salaried work force by 10,000, or 14 percent, this year and temporarily reducing the pay for a majority of its U.S. white-collar work force.
In the U.S., GM’s salaried work force of 29,500 will be cut about 3,400, or 12 percent, by May 1. The cuts will leave GM with 63,000 white-collar workers worldwide.
The company also said executive employees in the U.S. will have their base pay cut 10 percent and many other salaried employees will see pay reductions ranging from 3 percent to 7 percent. The U.S. pay reductions will also go into effect May 1 and will be in effect through the end of the year.
The Detroit automaker is racing to put together a long-term viability plan to present to the government Feb. 17. It has said it needs to cut its U.S. salaried and hourly work force by as much as 31,500 people through 2012.
GM’s shares slipped 13 cents, or 4.59 percent, to $2.70 Tuesday.
SOURCE: clarionledger.com
Tags: automaker, Detroit, federal rescue loans, General Motors Corp, layoffs, Michigan, pay reductions, shares
