GM cutting more jobs, employee benefits: reports
Friday, 24 October 2008, 23:56 IST
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Washington: The beleaguered General Motors Thursday said it is cutting more management jobs and stopping some employee benefits, including contributions to so-called 401K private employee savings plans, according to the Detroit News. "The global credit crisis has had a dramatic impact upon the industry at large and new vehicle markets in North America and Western Europe have contracted severely," GM CEO Rick Wagoner and Chief Operating Officer Fritz Henderson were quoted as saying in a letter sent to executives. "The global economic outlook remains very concerning. As a result, actions are being taken throughout GM's global operations to address our increasing need to conserve cash." GM has already surpassed its goal of eliminating more than 5,000 white collar jobs through voluntary buyouts and early retirements, but now will be forced to carry out involuntary layoffs. GM, the country's largest automaker, has been burning through more than $1 billion a month in losses, and is currently considering a merger with the cash-rich Chrysler, the country's third largest automaker. The announcement of further job and benefit cuts came as the company determined that a planned $15-billion sale of assets and savings won't be enough to maintain GM's liquidity, Bloomberg financial news service reported, quoting unnamed sources close to the discussions.
Source: IANS
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