24 Cars blue Sky: GM to lay off 10,000 salaried workers, executives salaries to be reduced by 10%

GM started notifying its employees today that it will cut salaried employment globally from its current level of 73,000 to approximately 63,000. GM said the move is necessary due to the significant drop in sales and the need to restructure GM for long-term viability.
The Detroit automaker said that the need to cut salaried workers was [...]

The Detroit automaker said that the need to cut salaried workers was announced in its restructuring plan that was submitted to Congress on Dec. 2 and that this week it will begin implementing that aspect of the plan. Next week, GM will head to Washington, D.C. once again to show that it is viable and has a well thought out restructuring plan if it wants to continue receiving government loan.

The General said that approximately 3,400 of its 29,500 salaries employees in the U.S. will be impacted. The reduction will be paid with GM’s programs and policies which provides assistance to laid-off employees. Most of the reduction will be completed by May 1, 2009 said GM in a press release.

Also beginning May 1, U.S. executives employees will have their base salary reduced by 10 percent will other salaried workers will see a reduction of 3 to 7 percent.