General Motors Announces 14 Percent Workforce Reduction
With the ongoing financial crisis which greatly affects the auto industry, General Motors (GM) has recently announced its latest cost-cutting measures which include reducing its workforce up to 14 percent, affecting more than 10,000 employees.
With this recent announcement, experts warned that unemployment rate would further rise because of GM’s massive layoffs.
General Motors (GM) has recently announced its new cost-cutting measures which include massive layoff reduction which can affect 14 percent of its workforce, or 10,000 employees.
Recently, the federal government gave GM a multi-billion bailout package to boost its business and save it from the impending bankruptcy. Meanwhile, the government stipulated that the company should provide report before February 17 or it will pull out other financial assistance amounting to $4 billion.
The company said that nearly 3,500 employees in corporate position will be laid off and more than 4,000 workers from Europe will also lose their jobs.
Meanwhile, the auto maker had announced that it will adopt executive pay limit that will cut up to 10 percent of their initial salary. On the other hand, majority of GM’s workers will have to cut their salary up to 3 to 7 percent. This salary reduction will be made effective on March 1 according to the auto maker.
Another contingency plan of the company is offering early retirement for workers, a measure which is also adopted by other auto maker including Chrysler LLC.
The Detroit 3 have already reduced its workforce by half, affecting more than 250,000 employees since 2000. Meanwhile, the auto industry warned that more people will lose their jobs amidst the global recession.
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