GM cutting 10,000 jobs worldwide
SOUTHFIELD, Mich. - General Motors Corp., the largest US automaker, will cut 10,000 salaried jobs globally and reduce pay by as much as 10 percent to prove its viability and try to keep $13.4 billion in government loans.
The cuts represent about 14 percent of GM's 73,000 positions worldwide and include 3,400 of the company's 29,500 US workers, the Detroit-based automaker said yesterday.
The company will also reduce the pay of most US salaried employees from May until at least the end of the year - lowering executive salaries by 10 percent and many others by 3 to 7 percent. Abroad, salaries and benefits are being reviewed, GM said.
The company has until next Tuesday to submit to the Treasury Department a plan to reorganize, restore profit, and repay US loans by the end of 2011. GM chief executive Rick Wagoner already sliced his annual salary to $1.
GM and Chrysler LLC, both awaiting President Obama's appointment of a so-called car czar to oversee their restructuring, need signed preliminary accords to cut retiree and other union costs and to exchange bondholder and creditor debt for equity before the deadline.
GM started offering buyouts to 62,000 union workers last week and is in talks with the United Auto Workers about trimming benefits. People familiar with those buyouts said the automaker is targeting more than 10,000 union jobs and is expecting more than half that number to accept.