General Motors today notified employees that it will reduce the number salaried workers from 73,000 to 63,000 on a global basis this year. The announcement comes as the world's economy deteriorates, credit dries up, and shoppers ultimately wind up buying less vehicles.
The decision was undoubtedly a difficult one-- though necessary to cope with a severe drop in worldwide sales. Additionally, the cuts adjust the automaker's makeup as part of its restructuring plan. Though grim, the employee cuts will help to ensure the long-term viability of GM as promised to Congress late last year.
Regional leadership will share the bad news with employees on a regional basis, and GM says that reductions will vary by global region depending on staffing levels and market conditions.
About 3,400 of GM's 29,500 employees in the US will be impacted. GM separation programs and policies will be adhered to-- meaning severance payments, benefit contributions and outplacement assistance will be available.
Workers who remain employed after the May 1 target for layoffs will likely face salary cuts in the ballpark of 10 percent.
photo:General Motors
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The decision was undoubtedly a difficult one-- though necessary to cope with a severe drop in worldwide sales. Additionally, the cuts adjust the automaker's makeup as part of its restructuring plan. Though grim, the employee cuts will help to ensure the long-term viability of GM as promised to Congress late last year.
Regional leadership will share the bad news with employees on a regional basis, and GM says that reductions will vary by global region depending on staffing levels and market conditions.
About 3,400 of GM's 29,500 employees in the US will be impacted. GM separation programs and policies will be adhered to-- meaning severance payments, benefit contributions and outplacement assistance will be available.
Workers who remain employed after the May 1 target for layoffs will likely face salary cuts in the ballpark of 10 percent.
photo:General Motors