General Motors announced Tuesday morning it will cut approximately 10,000 white collar positions and significantly reduce executive pay this year. GM says it will reduce salaried employment globally from a current level of 73,000 to approximately 63,000. In the U.S., company executives will have their base pay reduced by 10 percent, and many other salaried employees will see reductions of 3 to 7 percent.
General Motors told Congress on December 2, 2008 it would take actions to reduce workforce costs. “The announcement this week begins implementation of this aspect of the plan,” GM said in a statement to the press.
Of the 10,000 employees expected to be let go, 3,400 are located in the United States. GM has a total of 29,500 such workers in America. The majority of the reductions, which will be accomplished via buyouts, are expected to take place by May 1, 2009.
02/10, 11:56 AM
posted by:
zfenderguy
Wonder when they are going to sell the Ren Cen. Property values in Detroit the way they are, you could probably nab it for a couple hundred grand
02/10, 12:01 PM
posted by:
Jon Luc
Too bad GM doesn’t start at the very top on this one.
02/10, 12:16 PM
posted by:
idrinorbarsaku
Jon Luc
+1000000 X infinity
02/10, 12:20 PM
posted by:
oldraven
*waits for someone to point out how this move is irresponsible and completely different from how every other automaker is cutting their workforce*
02/10, 12:37 PM
posted by:
miket
I’m very impressed that GM is offering buyouts to salaried workers. You don’t see that often. My company cut 10% of salaried staff at the start of Q4 last year. They all got 1 week’s severance pay for each year of service.
02/10, 12:37 PM
posted by:
yarddog82abn
“NEED MORE OIL FOR GM”
TAKE THE BUY-OUT!
Waite a minute…. “white collar positions”
LOL…….. silly me, your a lot porter at a small Chevy dealer….
My Bad…..
Hay… wash my Surberben, and don’t forget to clean the wheels, there’s a a shinny nickel in it for you….
02/10, 12:38 PM
posted by:
johnnycanuck
Aren’t we way overdue for a piece on the Volt or the Camaro? These are the cars that will save GM after all.
02/10, 12:47 PM
posted by:
ricky_b
yarddog – you funny
02/10, 12:56 PM
posted by:
CADDY-V
So GM has 29,500 white collar employees in the U.S.
and out of the 10,000 job cuts 3,400 are local. So 6,600 are outside of the U.S.
This is not counting any other employee such as blue collar,ect,ect.
This is also after lots of other job cuts.
So does anyone know about how many people GM had employeed around the world before all these job cuts got started?
02/10, 1:16 PM
posted by:
mayer_ray_nagin
Soon they can all get jobs building frisbee golf parks for Obama, so dont worry.
02/10, 1:49 PM
posted by:
Need less oil for GM
Excellent news. People who work for American Automakers deserve to lose their jobs. Serves them right for selling out their Country.
Dont’ Buy GM. It is your Patriotic duty
(a reverse quote from “Need more oil for GM, on the Nissan job cut post)
02/10, 1:52 PM
posted by:
HoosierHero
I love frisbee golf parks… Go Obama!
02/10, 2:03 PM
posted by:
oldraven
Need less oil, do you think you’re actually helping the situation here?
02/10, 2:12 PM
posted by:
zfenderguy
Frisbee golf, awesome! Hope Obama turns a few of those Hummer, Saab and Saturn dealerships into skate parks too. That would indeed rock.
02/10, 2:18 PM
posted by:
Borat
I think cuts came upon LLN. There are no news for hours. Perhaps, MElias canned all of his contributors to save on expenses in hard economy.
02/10, 2:34 PM
posted by:
mayer_ray_nagin
…………….. Borat, are you advocating federal bail-out money for LLN?
02/10, 2:48 PM
posted by:
Borat
Fack it!
02/10, 2:54 PM
posted by:
johnnycanuck
That’s a great idea. My company has a nice private jet. I’ll arrange to pick you guys up for a junket to the Bahamas where we can work on our needs before we junket to Washington.
02/10, 3:02 PM
posted by:
mayer_ray_nagin
Look man, we gotta bail out LLN or else when we are all unemployed what the hell are we gonna do all day?
02/10, 3:08 PM
posted by:
Borat
going blind?
02/10, 3:13 PM
posted by:
johnnycanuck
…you mean besides drink cheap booze, watch porn and wander around the neighborhood babbling incoherently while not wearing pants?
Sorry, my mistake, I was envisioning my retirement.
02/10, 3:26 PM
posted by:
Ketzer
10,000 salaried cut – top pay execs reduced
Seems ass backwards.
Send a half dozen execs home and let the workers keep working.
02/10, 4:01 PM
posted by:
Borat
Johnny, welcome to the club!
02/10, 6:54 PM
posted by:
ryanpstr
no more oil for GM was one of the 10,000 cut, he was relieved of his duties..
02/10, 7:06 PM
posted by:
nestle_s
wow! i am not a big GM fan but this is bad really bad.
02/10, 8:12 PM
posted by:
wideopenthrottle
Johnny,
I just laughed so hard I couldn’t breathe.
02/11, 1:05 PM
posted by:
hummah
Need more oil… Where you at? Funny how you skip these kinds of news stories, about how your precious GM is floundering.
I don’t really like the terminology of “shedding” 10,000 employees though. The headline should not pull any punches. If I was LL’s Ed the headline would have read “GM fires 10,000 employees, Execs take mandatory pay cut.”