GM to cut 10,000 jobs

US auto giant announces fresh lay-offs as it continues to battle plunging sales.

    GM has to present a restructuring plan as a condition of its $14.4bn government bailout [Reuters]

    Most of the job losses will take effect by May 1, while most remaining US staff will see pay cuts of between 3 and 7 per cent for the year while executive pay would be cut by 10 per cent, GM said.

    "These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term viability"

    GM statement

    The job and pay cuts come in addition to buyout offers for GM's 62,000 union workers.

    "These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term viability," GM said in a statement.

    GM's sales in January plunged 49 per cent and the firm has said it expects overall US sales to be near 10.5 million vehicles in 2009, extending a four-year slump that has taken the market to levels not seen since the early 1980s.

    GM's rival Chrysler, which also received $4bn in government loans and is seeking an additional $3bn, is currently offering buyouts to its US hourly work force after cutting more than 8,000 salaried jobs in 2008.

    GM, Chrysler and Ford, the "big three" of the US motor industry, have shed about 140,000 jobs since 2005 and almost half of their workforce since the start of the decade.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    Heron Gate mass eviction: 'We never expected this in Canada'

    Hundreds face mass eviction in Canada's capital

    About 150 homes in one of Ottawa's most diverse and affordable communities are expected to be torn down in coming months

    I remember the day … I designed the Nigerian flag

    I remember the day … I designed the Nigerian flag

    In 1959, a year before Nigeria's independence, a 23-year-old student helped colour the country's identity.