GM to face further cutbacks?

After posting a $4.8B quarterly loss last week, rumors are circulating that General Motors may need to make larger cuts than those that were announced back in November. The automaker is already planning on cutting 30,000 jobs and closing 12 assembly plants; could GM be jealous that Ford's announcement earned a lead-off segment on The Daily Show? In all seriousness, it sounds like the General may finally go after the UAW jobs bank, where about 5,000 workers are being paid something north of $700M each year to not work.

Wall Street is understandibly not happy about these latest rumblings. An analyst from Merrill Lynch stated his expectation that "things are going to get worse before they get better," and Moody's is kicking around the idea of another debt rating cut. And then there's the possibility that GM may have to restate it numbers yet again to account for its ever-changing obligations in the Delphi debacle, as well as the "ongoing investigation" into how the company accounted for give-back credits from its suppliers.


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