The white collar job cuts in GM's Detroit-area engineering center and proving grounds that were rumored last week are coming to pass. Tuesday's job cuts affected nearly 500 staff at 30 locations.

The cuts are part of the white collar job reduction program GM announced late last year, when it said that it would cut about 2,500 positions in 2006.

The reduction in salaried staff is undoubtedly timed to send a message to GM's hourly employees that they aren't the only ones bearing the burden of the company's restructuring, after last week's agreement with the UAW for an accelerated retirement plan for its union workers.

[Source: Automotive News]


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