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.