REPORT: GM to finish planned cuts by canning 4,000 salaried employees by Oct. 1
With market share continuing to shrink and a miserable market for automotive sales, General Motors is forced to shed even more white collar workers. GM spokesman Tom Wilkinson reportedly told Bloomberg that the struggling US automaker is offering retirement packages for up to 4,000 non-union workers this week. That equates to about 15% of GM's current salaried workforce, and 20% off the totals from January 2009.
Workers who choose to accept the buyout will receive "enhanced benefits," while those ineligible for retirement will receive up to six months severance pay. GM also plans to shed about 35% of its executive workforce, which today stands at about 850 top level managers. Execs not eligible for retirement will receive up to one year severance.
While GM's white collar workforce has gone through an awful lot in 2009, the situation could get worse if the General doesn't see an adequate take rate for its latest round of buyouts. If GM doesn't hit 4,000, the automaker will be forced to rely on involuntary separations. In other words, more people in Michigan could be left out in the cold.
[Source: Bloomberg | Image Source: Spencer Platt/Getty]
Reader Comments (Page 1 of 1)
MajorGeek 9:48AM (6/24/2009)
Do numbers exist on how many were employed before, and after, all of the cuts that have happened? I would be curious to what state and\or country all these layoff happen at.
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Frank 10:00AM (6/24/2009)
That takes the cake. Add more Legacy cost to the mess. If you want to get rid of people why don't they lay them off?
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Henry 10:37AM (6/24/2009)
“Add more Legacy cost to the mess”
Companies HAVE TO offer something in order to get a release from the employee.
If GM fired a 58 year old employee with 28 years at the company, they would end up paying half a million in court when the employee sues for age discrimination (plus attorney fees and court costs).
The duration of the severance pay is at most, 6 months pay which is pretty typical in this economy (even in banking, technology, other white collar jobs) and also requires a release from any lawsuits. Why executives get 12 months versus a maximum of 6 months… that’s another story.
Frank 2:24PM (6/24/2009)
I didn't say anything about firing I said layoff. The company should ask for protection from these lawsuits. If the lawyers know that they are not going to win good luck representing yourself in court.
David 10:39AM (6/24/2009)
I thought Obama and his crew were going to "CREATE JOBS"? Oh wait... he said they were going to "SAVE" jobs. Hmmm... Oh snap... of course, he's saving UNION/UAW jobs. Of course. How silly of me.
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UCJR 10:54AM (6/24/2009)
No, he's saying he's going to create 'green' jobs.
Meaning we're all going to be day laborers out in the fields when our Chinese and/or iPod overlords finally take over.
Mr.Oak 11:04AM (6/24/2009)
David, you are an IDIOT.
Mr.Oak 11:23AM (6/24/2009)
UJCR: Wall St. wanted the free trade agreements, Big George, Bubba C and L'il George gave it to them. This is the Finished product of all those agreements.
Here is one of life's great lessons:
Never lend a man a dollar to gamble against you. Especially if he doesn't play by or observe the same rules as you do. At game's end, he Will be lending you a dollar to get home.
Capitalism and Nationalism met at the cross-roads and Capitalism won. National interest be dammned, the true Capitalist (not you pretenders \ wannabes) only act in his OWN interest.
PS: Before you blind fools speak, acting in the interest of one's country is NOT socialism. Love of one's country has nothing to do with SOCIALISM.
tuxchown 12:27PM (6/24/2009)
Mr. Oak = One of the few around here who understands what the hell is going on.
David 1:11PM (6/24/2009)
Mr. Oak... ummm... uhhhh... hmmmm... ahhh... nevermind!
Saxxon 6:54PM (6/24/2009)
Mr. Oak you are right.
"Acting in the interest of one's country is NOT socialism. Love of one's country has nothing to do with SOCIALISM."
Government control of private industry, expansion of government control through entitlement programs, labeling free-thinking, free-speaking Americans as "Terrorists", spending money, creating debt, and redistributing private wealth without consent of the public, now that IS SOCIALISM.
Suzie 12:32PM (6/24/2009)
Yes, Obama is surely responsible for 20 years of horrid mismanagement at GM.
Personally, I'm glad these people are going. GM Management doesn't have such a great track record. Maybe some of the badge engineering proponents got canned.
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Saxxon 6:56PM (6/24/2009)
Yes, Obama is surely responsible for 20 years of horrid mismanagement at GM.
No, but he will be responsible for the horrid management of GM to come.
Mr. C 4:47PM (6/24/2009)
17 out of 20 countries that were at the world trade summit pactice protectionism openly. All of you hypocrites who preach free trade still like to buy products that are protected from their respective countries. Wake up USA
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Saxxon 6:45PM (6/24/2009)
Just more jobs lost this month.
Like throwing more logs on an already roaring fire.
Thank you, Chairman Maobama!
"Change you can believe in" Yeah its change alright, for the worst.
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