General Motors has shaken up its management team over the last few months, but GM CEO Fritz Henderson says several more key changes are on the way. Henderson revealed on Tuesday that the Michigan automaker plans to reduce its global management team by 34 percent by year’s end.
GM’s management team has become bloated over the past several years, but the Detroit-based automaker will remedy that situation by the end of 2009. “GM will be making changes both in the structure and processes to run the business, which includes for example, reducing executive manpower by 34 percent from year-end 2008 through 2009,” Henderson said told Automotive News. “Yes, there will be significant change.”
In the U.S., Henderson expects GM to shed about 20 percent of its salaried workforce by year’s end. GM started 2009 with about 29,000 salaried workers but will end the year with about 23,500.
GM has already seen a number of key executives leave the company this year. Former GM CEO Rick Wagoner was ousted by the Obama administration and most recently purchasing boss Bo Andersson left GM to take up a position with Russia’s GAZ. GM’s Bob Lutz will exit the company at the end of 2009.
06/16, 5:08 PM
posted by:
leftwingagenda
i’m sure you guys will give me crap about this, but yes, my application was refused…damnit…
06/16, 5:18 PM
posted by:
mayer_ray_nagin
Hahahah! Leftwingagenda, you should have contributed more to Obama. Then you could get an ambassadorship.
Someone please tell me:
…… Why does Fritz Henderson have ears like Spock but a face like Scotty and a
…… moustache like a Cardassian warthog?
06/16, 5:43 PM
posted by:
johnnycanuck
Beam me up mayer_ray. I’ve got a hankering for one of those Orion slave girls and some Romulan ale.
And yes, this is a good move. If nothing else GM’s executive is pretty rank.
06/16, 6:30 PM
posted by:
dzuchowski
I can see why they are cutting the executive ranks for these reasons:
1: they have cut several brands
2: they have laid off some people
Because GM is selling off Hummer, Saab, Saturn, Opal/Vauxhall and killing or selling Pontiac, i wonder if by just doing that if that accounts for most of the 34% cut in executive ranks? It would be interesting to see,,,,
06/16, 7:22 PM
posted by:
mayer_ray_nagin
Johnny, I found an all-American Orion Slave Girl who will gladly satify your every need.
……… http://i87.photobucket.com/albums/k148/WaaaaHoooo/OrionSlaveGirl.jpg
06/16, 7:31 PM
posted by:
johnnycanuck
Thanks mayer-ray. I think my phaser is now on permanent stun.
06/16, 7:43 PM
posted by:
The Stig
They’re losing money yet not cutting the ranks. That’s brilliant management.
06/16, 7:43 PM
posted by:
StepAhead
mayer_ray, that Orian Slave girl is my girlfriend, how did you get her photo?!?Lol
06/16, 7:54 PM
posted by:
carstuff
Stig, I do not get your comment. The article states they are going to cut 34% this year. To me that is cutting the ranks. Clue me in here please.
Also GM has been cutting salaried/execs for 6 years now, probably about 5-10% every year.
From March 2006: “The company has said it plans to reduce its salaried work force by 7 percent this year.”
In summary from 2004-2008:
“GM’s salaried headcount in the United States has already dropped by one-fourth over the past four years, from 39,000 in 2004 to 29,000 at the end of 2008.”
06/16, 9:03 PM
posted by:
spg900
Sacrifice that slave girl to the BORG. It would be interesting to see how many implants they can get on her.
06/17, 4:39 PM
posted by:
slump buster
Will the remaining 66% be counted as “jobs saved” by the president?
06/17, 6:08 PM
posted by:
The Stig
@carstuff,
They’ve been vectoring downwards for a long time yet the good-buddy executive club grew in size.
06/18, 3:44 AM
posted by:
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06/18, 7:57 AM
posted by:
carstuff
Stig, do you have any data to back up your comment?