General Motors already announced a plan earlier this year to free up $15 billion in cash, but the bleak economic forecast has the Detroit automaker searching for even more ways to cut costs. GM will release its third quarter results on Friday, at which time the automaker will also announce “important changes” to its automotive operations.
According to The Detroit News, GM CEO Rick Wagoner and company COO Fritz Henderson will announce the important changes to employees at 11 am on Friday. “Clearly given the challenges the industry is facing, we’re probably going to have to make additional adjustments,” GM spokesman Tom Wilkinson told The Detroit News. “It’s a very challenging time right now.”
No word on exactly what changes will be made, but further white collar job cuts are expected. GM recently suspended employee 401(k) matching, as well as several other employee programs.
It remains possible that GM could make an announcement regarding the GM- Chrysler merger, although no final agreement has been hammered out.
GM sales tumbled by more than 45 percent in October, with overall sales down more than 20 percent this year.
