GM Starts Layoffs Affecting White-collar Employees
After receiving bailout package from the federal government, General Motors promised to modify its management system and operation to make sure the financial aid is maximized—this includes cutting workforce that will affect white-collar employees.
Meanwhile, the car maker said that 160 people, who are mostly engineers, will be laid off.
Weak demand and slumping sales has forced General Motors (GM) to lay off 160 white-collar workers as part of its cost-cutting measures to keep its finances afloat amid the global recession.
The workforce reduction will mostly affect engineers in Warren, Michigan, according to GM spokesman Tom Wilkinson.
Wilkinson said the company is planning to reduce its workforce up to 47,000 workers before the year ends, and 3,400 of them are salaried employees. This plan, the spokesman said, is in line with the agreement with the government to shrink its workforce in exchange of bailout packages.
Meanwhile, the company also said that more than 18,000 blue-collar workers will face lay off by the end of the year.
“As of April 6, 160 salaried employees will be laid off. And in the early part of May, there will be also involuntary separations. All in all, this move will have a significant impact on the business operation”, Wilkinson added.
Recently, the car maker requested another bailout package which can reach $16.6 billion in addition to $13.4 billion financial assistance it has received from the government.
In exchange of bailout package, the federal government requires GM to submit its restructuring plans before February 17 that will show where the money is going.
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