General Motors (GM) will 10,000 jobs and slash pay for US executives by 10 per cent as sales at America's largest automaker plummet.
GM said that it would reduce its global workforce from 73,000 to 63,000, with about 3,400 of its 29,500 US staff to go. Most of the redundancies will be completed by May 1.
The number of jobs to disappear in each region will depending on current staffing levels and local market conditions, the Detroit company said.
At the same time, temporary pay cuts of 10 per cent will be introduced for US white-collar employees, while other workers at the automaker will see their pay packets shrink by between 3 per cent and 7 per cent.
The salary reductions will start in May and are likely to continue for the rest of the year.
The cuts are part of a plan to slash costs as worldwide demand for vehicles is hit by the recession.
GM and its smaller rival, Chrysler, must submit restructuring plans to the US Government by February 17 under ther terms of a $17.4 billion bailout provided to the companies by taxpayers.
No comments:
Post a Comment