GM to cut 10,000 jobs globally
February 11, 2009 by Matt Brogan
In a further bid to help ailing General Motors ride out the economic crisis, the American company will cut 10,000 white collar jobs globally.
As GM battles pretax losses of $2.8 billion (USD), decisions have been made to cut approximately 3,400 of GM’s 29,500 salaried employees in the US with the remainder of job cuts to come from Europe, then other operations around the world.
GM also will cut the salaries of many of its employees. The cut in base pay for executives will be 10 percent. Many other salaried workers will have their pay reduced by 3 percent to 7 percent.
The details are currently being worked out on a country-by-country basis and will include jobs that will go when GM separates its Swedish unit Saab into a standalone company.
Saab’s global sales fall 25.5 percent to 93,338 units. GM has launched a review of the Swedish brand with options including a sale.
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God you would hope not Frontman……..any word on what he is getting ?
Makes you wonder if 10,000 is enough with GMs position at the moment seeing Nissan is cutting 20,000.
I wonder how many more job losses here for holden.
I wondered that too ,hopefully none BK ?
Would have to be alot here in Australia as the rear wheel drive program is now cancelled and sales are way down. Not to mention the failure of the Pontiac G8 and the cancellation of the Pontiac Ute. Holden import most of their range from Daewoo so not alot of R and D going on either. and dont forget the 5oo people who will lose their jobs when Holden close the 4 cylinder engine plant very soon, added to the 600 engineers. Who knows how long GM will last in the USA …….not looking good for Holden.
The media has made more of this than it should have been. Go out and spend money people, we are the cause.
Your right there Salesman ,hasnt the US have been broke for years but since they finally admitted it the whole world went into panic and stopped spending money !
I asked Wheelnut last night ,what happens to car manufactures like GM if they do finally close the doors ?Who looks after the spareparts supply for the millions of their products out there ?
I cant seeing the US government ever allowing them to close up!
Salesman,
People won’t spend money unless they feel secure. I was going to buy myself a new car in February and I have shelved it. And my income is not threatened at all.
Brett, Salesman and (.)(.) are right, we need to actually just get on with our lives. From what I am seeing in my travels, the only people who are actually “suffering” under recession are the Government & the (general) Media.
The shift in the motor industry that we all keep reading about is actually just the end of the boom time. I believe you will find this year we will still sellcars in Australia, it’s just that it’ll be at the 2005 level. Over the past few years you have had companies continually cutting profits to increase volume, which naturally artificially inflated the sales figures. But meant that everyone made less money. By the end of the year the manufacturers and importers will be back to making $$$. That is after all what they are here for. If they can’t make dollars they will leave. Does anyone remember the brands that were available in the late seventies?? Does that list sound familiar again? History does repeat.
I lose nothing by keeping the money in the bank; whereas if things do worsen dramatically then I may regret having spent it. So I will be conservative and leave it in the bank. I can buy a new car later if things stabilise.
On my very first day of selling cars (a few years ago now) a salesman by the name of JW (not known for his optimism) told me the game was stuffed, get out while you are young. My numbers are down from the last two years, but no worse than figures from 2005. Like Frontman said, this is the end of a boomline. If you want to know what happens next then check your history. Nobody ever reports the good planes landing.
Brett, I’m not denying your right to do such, but it is exactly that attitude as to why the Stimulus package wont work! You’d bank the money, I’d pay off my christmas credit card bill :-( and we wouldn’t spend the money.
See the best thing that could happen is for everyone to turn around and say “hey we’re in recession!!! Now what are we going to do to get out of it??”
That’s my belief because you (like so many) are worried about what is going to happen, if I tell you it has happened then you will take on the very Australian attitude of building a bridge and getting over it.
If we are in recession (like before) people will just get on with their lives. They purchased cars last time, but stuck with the more mundane, common brands and stayed away from (quasy luxury) imports. They were more careful with they’re money and it was brands Like Ford, Holden & Toyota with their Australian built stuff that were selling best.
When I was selling houses Salesman my boss told me “with every boom there is a bust”,guess what we just hit? They normally go around in 8 year cycles I think he said ,do we all remember what we were doing 8 years ago and how things were ?
Exactly BM. Look at the fear it has installed into the world. Here’s an oldie. F.E.A.R False. Expectations. Appearing. Real. I would be disappointed if I didn’t see a bust every few years, it’s just a part of the economic turn around.
I see a bust everytime BM makes a comment……….. (Okay I’ll get back in my box :-()
hahaha You live in a box Frontman ? Perhaps you should call yourself “Jack”.
Nah just can’t afford a dog “HOUSE” ;-)
Keep On topic please
Sorry,good to see you watching Alborz : )
The Bust and Boom cycle is regular but you can attribute it to every 8 years. Agree with frontman, getting on with your life is the only thing you do, companies go broke, others and news ones take its place, learn from the past mistakes, and the next recession could be catalysed from another nature…
Though, Debt is a major factor to stimulating the current recession, there needs to be more regulations around this (especially in the US) Many lenders or agents rely on Commission, which breeds greed lending to incapable individuals.
its over here too people,
apparently holden has just canned its “guild”.this was a big dollar reward weekend for its top salespeople.the reason,the us bailout.fishy bend’s production schedule for 09 looks a bit like swiss cheese,with output slightly worse than an average public service building on a friday arvo.very grim folks…
“Many other salaried workers will have their pay reduced by 3 percent to 7 percent”
Don’t you mean 3 to 7%. Sorry being captain finickity.
Job cuts…sounds about right to me, most brands have been over producing for years, discounting cars to fleet buyers at the expense of private buyers. Why any private buyer would pay top wack for a new car when the fleets get them at a discount, to find the discounted price undermines the privateers resale value. They had it coming, they deserve it. No sympathy for the Co’s only their unemployed workers. Bad Management all round.
Just heard on ABC Radio The World Today Programme, Rick Wagoner has stated that GM’s financial situation is more dire than previous stated and that 37,000 jobs will be cut world wide.