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GM to Cut Salaried Jobs and Truck Production, Halt Stock Dividends

07/15/2008
In an effort to raise approximately $15 billion in liquid assets by the end of 2009, General Motors (GM) will cut salaried positions by approximately 20 percent and reduce truck production by 300,000 units. CEO Rick Wagoner says the company hopes to make the majority of the jobs cuts through attrition, including retirement and voluntary buyout packages. The company currently has about 32,000 white-collar jobs in the United States. The reduction in truck production will be achieved both through the previously announced closure of some plants - with some of those closures possibly coming sooner than planned - and through additional closures that have not been detailed yet. Additional cost-cutting measures include suspending the dividend on the company's common stock, suspending pay raises for salaried workers and discretionary bonuses for executives, and cutting healthcare coverage for Medicare-eligible salaried retirees. Say Wagoner, "Today's actions, combined with those of the past several years, position us not only to survive this tough period in the U.S., but to come out of it as a lean, strong, and successful company."

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