GM's Global Restructuring Plan to Cut 10,000 Jobs

Australian carmaker Holden will not be directly impacted by General Motors' (GM) decision to cut 10,000 white-collar jobs worldwide, which amounts to 14% of its salaried workforce. The U.S. company aims to reduce its global salaried workforce to approximately 63,000 in 2009 as part of its plan to return to profitability. The job losses are coupled with a 3-10% reduction in pay for salaried workers. GM attributed the move to a severe drop in vehicle sales worldwide and the need to restructure for long-term viability.

Key Takeaways:

• GM plans to cut 10,000 white-collar jobs worldwide, representing 14% of its salaried workforce.
• The job losses are part of a global restructuring plan aimed at returning the company to profitability.
• GM expects its global salaried workforce to reach approximately 63,000 in 2009.
• The company will implement 3-10% pay reductions for salaried workers.
• Holden, an Australian carmaker owned by GM, will not be directly impacted by the job cuts, but it is assessing its own restructuring needs.
• Holden has already responded to the economic downturn by cutting production and implementing worker leave periods.

Statistics:

• 10,000: The number of white-collar jobs to be cut worldwide by GM.
• 14%: The percentage of GM's salaried workforce that will be cut.
• 63,000: The expected number of GM's global salaried workforce in 2009.
• 3-10%: The pay reduction for salaried workers implemented by GM.
• 2010: The year in which Holden plans to start producing a new small car in Australia.

Sources:

• Asia Pulse - Feb 11, 2005
• GM's statement on its restructuring plan
• AAP - Report on Holden's response to GM's job cuts