General Motors said today it would cut 10,000 white-collar jobs worldwide this year as part of a restructuring plan the struggling car maker submitted to the government in exchange for a bailout.
GM said it expected the headcount reduction to reduce its global workforce to about 63,000 in 2009. It also said it would cut the pay for most of its US employees until at least the end of the year.
'These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term viability,' the Detroit-based car maker said.
'GM outlined the need for the reductions in its restructuring plan submitted to Congress on December 2, 2008. The announcement this week begins implementation of this aspect of the plan,' it added.
GM has received $9.4 billion from the US Treasury to avert collapse, including $5.4 billion on January 21. Under the bailout agreement, GM must submit a preliminary viability plan to the US Treasury by February 17. The final plan is due March 31.
GM said the white-collar job cuts would vary by global region, 'depending on the staffing levels in the region and market conditions.'
Of the 10,000 jobs targeted for elimination, about 3,400 will come from GM's US workforce. The company will move swiftly to reduce the US headcount through redundancies and other separation measures, with a May 1 deadline for the majority of the departures.
GM also announced a temporary pay reduction for a majority of US employees, beginning May 1 and effective until the end of the year, when it will be reviewed.
