Earlier this month GM revealed that it would be attempting to save about $1.5 billion by reducing some employee benefits and reducing its salaried workforce. The carmaker estimates that the combined effect would be a 20% reduction in salaried pay and benefits, however the Wall Street Journal is reporting that part of the cost reduction will include thousands of job cuts that are expected to start on November 1.
GM has also confirmed plans to scale back its vehicle-leasing operations, which could further worsen U.S. sales. While GM plans to continue to offer subsidized leases in the U.S., it is adjusting some of the lease terms and will exclude certain vehicles.
The cost saving tactics are being used to reduce its expenses by around $10 billion by next year, and the General is already in the midst of getting rid of its Hummer brand, which is underperforming and unattractive to the market in today's climate.
GM is not the only Detroit manufacturer to be hit hard by the sudden turnaround in the auto market - Ford was also forced to eliminate 15% of its salaried workers in order to minimize costs, and Chrysler, too, has announced cuts of its own.