Reports: GM to cut 15% of salaried workforce
Reports: GM to cut 15% of salaried workforce
Automotive News | July 30, 2008 - 2:47 pm EST
DETROIT — General Motors refuses to confirm or deny reports that it will cut 15 percent of its salaried workers in the United States and Canada by Nov. 1.
The Associated Press and The Wall Street Journal reported the cuts today.
GM announced July 15 that reductions in salaried workers, coupled with the elimination of health care coverage for U.S. white-collar retirees, would result in $1.5 billion savings in 2009. That equates to about a 20 percent cut in salaried pay and benefit expenses, GM said.
All told, GM plans to cut $10 billion in cash expenses next year.
GM stock closed today at $11.40, down 50 cents, or 4.2 percent.
GM is scheduled to report second-quarter earnings and July sales results on Friday, Aug. 1.
