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.
