GM Stock Chart 7-17-08
The cuts keep coming, and anyone collecting a check from Detroit's Big Three has to be wondering for how much longer.
General Motors has confirmed that the 15 percent cut in salaried "costs" it announced earlier this month will result in the loss of 5,000 white-collar jobs. Look for the bulk of those cuts to occur in the U.S., though some could be trimmed at overseas operations, as well.
It's hard to keep track of all the players without a scorecard, it seems. So, we've added it all up, and Detroit makers plan to cut 10,000 salaried staff, as part of their latest round of desperation cost-cutting measures.
But that's not the end of the bad news. Chrysler has announced it is indefinitely suspending tuition reimbursement for virtually all of its salaried employees, in the U.S., Canada, and Mexico. Ford took similar steps in June. GM will continue its tuition assistance program, but no one is saying for how much longer.
Look for still more bad news from the domestic giant on Friday, when it releases what, by all expectations, will be a devastatingly bad second-quarter earnings report.