From 20 North American offices, the company will trim down to five regional centers in the U.S. and Canada, and get rid of 930 workers, representing 15-percent of the workforce. After GM takes the charge for restructuring, the move will provide $175 million in savings.
And as with Chrysler, Cerberus isn't sweating the current state of things. Feinberg, in that letter to investors, said of GMAC, "The good news is that we bought GMAC cheaply enough so that even with all the bad news in the mortgage market and credit markets, we are still in reasonable shape with our overall investment. However, if the credit markets continue to decline and we find ourselves in a prolonged environment of capital market shutdown, GMAC could run into substantial difficulty." Still, doomsday appears to be a ways off: GMAC expects to be profitable again in 2008.