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GM to cut 10,000 salaried positions

 
1 1,068 views Feb 10, 2009

Each member of the board who is not a GM employee will be paid $200,000 annually for their services

Each member of the board who is not a GM employee will be paid $200,000 annually for their services

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General Motors has notified its employees that it will reduce salaried employment globally from a current level of 73,000 to approximately 63,000 - a reduction of 14% - over the course of the year. The company will also slash compensation and benefits for its remaining salaried employees as it attempts to turnaround its losses in the lead-up to the February 17 U.S. Treasury viability presentation.

In the United States, approximately 3,400 of GM's 29,500 salaried employees will be impacted. These reductions will be made using GM separation programs and policies, which provide for severance payments, benefit contributions and outplacement assistance. The majority of the reductions are expected to take place by May 1.

GM also announced a temporary pay reduction for a majority of U.S. salaried employees. This begins May 1, and will be effective through the end of the year, when it will be reviewed. In the U.S., executive employees will have their base pay reduced by 10%, and many other salaried employees will see reductions of 3 to 7%.

Salaried employment reductions in other regions will depend on staffing levels in the region and market conditions.



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Comment (1)

  1. ma_54chevyman avatar 54chevyman Posted: 2/10/2009 6:39am PST

    Tough decisions have to be made. GM can return to greatness once it trims the fat from union workers and get more automated like CAT so it needs less workers. Their investments will be in battery technology and new jobs too. The US has the scientist to do so now is the time to lead the world much like the with A Bomb in Los Alamos. It is critical to our future as a world power and in order to pay the national debt, with Government Aid, our science can soon get into production.
     
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