Filed under: Hirings/Firings/Layoffs, GM
GM to cut 5,000 salaried workers
General Motors is looking to reduce its salaried (read: non-unionized) workforce by 5,000 employees by the end of the year, leaving the beleaguered automaker with 27,000 white-collar jobs in total. This 15% head-count reduction is part of an ongoing effort to trim costs as the automaker continues to hemorrhage cash.Also on the docket are early retirement plans offered to a select group of workers close to retirement age, while employees who choose to stay won't be getting raises until 2010 at the earliest. If GM reaches its reduction goals, the automaker will have shed its salaried workforce by 17,000 people in the last decade alone.
[Source: The Detroit News]
Reader Comments (Page 1 of 1)
stratojet 7:00PM (7/30/2008)
The most serious concerns for GM are these:
They offer packages to people close to retirement and who have over 30 years with the corporation. This does not solve the problem of the bloated mid and senior management.
In fact, many of the so-called executives and middle management who caused this predicament are still around and still drain the company's resources.
They run the risk of loosing valuable and competent employees and retain only the yes men, the politicians and the PowerPoint heavy users.
To add to the insult, the offer to the unionized rank and file workers (Oshawa) is way better than the salaried one. Paradoxal, when you consider that UAW and CAW are, in a way, major contributors to the non-competitiveness of the company. Of course, before somebody says it, they did not design the vehicles; but the unions got more wealth from the corporation over the years than the shareholders. This explains
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stratojet 7:01PM (7/30/2008)
The most serious concerns for GM are these:
They offer packages to people close to retirement and who have over 30 years with the corporation. This does not solve the problem of the bloated mid and senior management.
In fact, many of the so-called executives and middle management who caused this predicament are still around and still drain the company's resources.
They run the risk of loosing valuable and competent employees and retain only the yes men, the politicians and the PowerPoint heavy users.
To add to the insult, the offer to the unionized rank and file workers (Oshawa) is way better than the salaried one. Paradoxal, when you consider that UAW and CAW are, in a way, major contributors to the non-competitiveness of the company. Of course, before somebody says it, they did not design the vehicles; but the unions got more wealth from the corporation over the years than the shareholders. This explains the Just over $10.00 stock price vs the huge liabilities toward the retirees.
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cFoo 7:34PM (7/30/2008)
The saddest thing here is that's not the source of GM's problems. The list of what is is too long. I'll leave it open for debate.
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Sorin 8:38AM (7/31/2008)
It’s not ok what it happens. I am sure that those employees will find something to work, but I think it would have been better for the employer to find a better solution.
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stratojet 4:27PM (7/31/2008)
Very small mind you are.
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