General Motors Corp which is concentrating on a leaner organisation with fewer levels of management plans to cut 20 percent of its remaining white-collar jobs by October as it sheds its Hummer, Saab and Saturn brands and slashes its manufacturing capacity.
This move of the bankrupt automaker will eliminate another 4,000 jobs through a combination of layoffs and terminations. GM already has sent letters to its employees detailing about GM's plans. The automaker also plans to cut 35 per cent of its more senior executive ranks.
By the end of the process, GM plans to have 23,500 white-collar workers in the United States. That would be down from more than 49,000 in 2000 and down from just over 29,600 at the start of the year.
GM has cut its unionized factory work force even more deeply and its cost-cutting actions have accelerated in bankruptcy.
The automaker has slashed 60,500 US factory jobs since 2006, more than half of its factory work force. Workers represented by the United Auto Workers are also being offered another round of buyouts this month.