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GM Announces Pay Cuts And 10,000 Layoffs For Salaried Workforce

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Surely everyone saw this coming: GM just announced that it's cutting 10,000 salaried jobs from its global workforce by the end of 2009. But wait, there's more: the company is also instituting pay cuts for its salaried employees in the U.S., effective May 1. Happy Tuesday!

Of the planned 10,000 layoffs, approximately one-third will be in the U.S. The company hasn't announced details of severance packages for affected workers, but given the somewhat skimpy buyout offer GM presented to hourly employees, it's doubtful that they'll be too generous.

As for the pay cuts, U.S. execs are likely to see a fairly uniform 10% reduction, with other white-collar workers experiencing cuts in the 3% - 7% range. No word yet on how this will impact GM's high-end executives, whose pay is being capped at $500,000. A 10% cut on top of a meager half-million salary? Looks like Buffy's sweet sixteen party won't take place in Gstaad after all.

GM says that the cuts are part of the company's restructuring plan, which GM is required to present to congress on February 17 in order to receive its share of bailout dollars. And that may be true, but it's also entirely possible that the restructuring has simply triggered cutbacks that should've been instituted long ago.

Whatever the case, one thing is painfully clear: Bob Lutz knows when to fold 'em.

[source: GM]

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Comments (6)
  1. "Shocked!!!"

    I'm surprised they have that many left...
     
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  2. "Not enough!"

    For me to ever entertain buying another Big-3 car/truck again, they'll have to do something to reduce the price tag by at LEASE 1/3. That would mean to go Chapter 11 and eliminate the UAW. Bring salaries/benefits/health insurance/retire-
    ment packages into line with the rest of the American public. OUT WITH THE UNIONS, IN WITH THE PEOPLE WHO WANT TO WORK FOR $35.00 AN HOUR. LET FREEDOM RINGGGGGGGGGGGGGGGG!
     
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  3. "$35 an hour?"

    I think most of them get $25 and still can't keep a job, so for $35/hour we'd have to send you to a different planet unless you get a reality check.
     
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  4. "$35+ an hour???"

    I think most of them get $25 and still can't keep a job, so for $35/hour we'd have to send you to a different planet unless you get a reality check.
     
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  5. "Millions for execs, Not!!!!"

    Hey Morons!!!
    The fault does not lie with the line workers, but upper management and the decisions made affecting the design and engineering process. A conscious accounting decision was made to limit quality to a certain price level or to maintain a profit level. Why does the average workers have to take the hit, when the high and mid-levels executives, who are mostly clueless, are making millions in base pay and assorted perks. Remember, these people did not start any business and would not know how anyway. How much do you posters all make. $35 is for line workers with 20 yrs experience.
     
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  6. "Did it to themselves"

    Everyone saw this coming except the management--they were too inbred, cocky, greedy, and lazy to see it coming. No wonder Accords and Civics are so popular............
     
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