Belt tightening has been a common theme in the auto industry this year and, despite funding packages intended to help automakers get through this rough patch, it looks as though things will get even tighter. General Motors announced on Thursday that more job cuts were on the way, and that some employee benefits would be suspended indefinitely.
GM announced on Thursday that further job would be necessary to meet, and even surpass, the company’s planned $15 billion in savings plan. No word on how many employees are facing unemployment, but the next round of cuts will focus on salaried employees.
The U.S.’ largest automaker also announced that it will be temporarily suspending its employee 401(k) matching program. GM had been matching up to four percent of employees’ income.
GM will also be putting the brakes on college tuition programs and child adoption programs. The company will stop taking applications for both programs on January 1st, according to Automotive News.
“Actions are being taken throughout GM’s global operations to address our increasing need to conserve cash,” the company said in a letter.
Although GM’s latest announcement should help free up some extra cash, it’s unfortunate that the cuts have to take away from employee benefits.
