GM cuts workforce
February 10th, 2009 by Richard Aucock
GM is the latest car maker to announce big job cuts – on Tuesday, it revealed 10,000 posts are to go.
That’s a shocking 14 per cent of the company’s salaried workforce. Those who are not made redundant will have a pay cut of up to 10 per cent instead.
This, said Reuters, trims GM’s workforce from 73,000 to 63,000. Around 3500 of those jobs will go in the US, where January sales fell by half.
The latest news is evidence of GM’s clear determination to slash costs as quickly as possible, as the deadline for submitting the multi-billion dollar bailout plan to the US Treasury looms.
If officials say the plan is not viable, the company may be forced into Chapter 11 bankruptcy.
Outside of the US, said Reuters, GM will also review pay and benefits for workers. Car Dealer will monitor the possible implications for the UK.
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