Report: GM may cut up to 5,000 white-collar jobs

Posted: Feb 07, 2009
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General Motors is planning to cut another 5,000 white-collar jobs in order to show the government it can be viable in the long-term. Bloomberg said the GM’s plans to cut thousands salaried jobs is a part of the plan being submitted to Congress on Dec. 2.

According to GM spokesman Tom Wilkinson who spoke with Automotive News, the number that Bloomberg has is purely speculative. He said that the General does plan on cutting hourly and salaried jobs, but has not indicated by how much.

On Dec. 2 when GM met with Congress in a bid to get federal loans, the automaker said that it ended 2008 with 96,537 hourly and salaried employees. It said that it plans to reduce another 65,000 to 75,000 by 2012 or 7,000 to 10,000 a year.

GM will submit its viability plan to the government by Feb. 17.


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  • zermatt

    With the trending decrease in sales and the government's plans to make GM a boutique manufacturer of all vehicles that scream Green, it seems unlikely that GM will need all of the back office people.

    I am sad to see all of these people lose their jobs at a time when unemployment is devastating Michigan.

    It didn't have to be this way. Beyond what the unions contributed, management was in denial about how much capacity was needed to be profitable. Too many dealers, plants, brands, model lines and back office people.

    GM, Ford and Chrysler should have been doing more to right size their businesses long before the current crisis.

    It comes down to the difference between accepting reality and hoping for the best.

  • zermatt

    With the trending decrease in sales and the government's plans to make GM a boutique manufacturer of all vehicles that scream Green, it seems unlikely that GM will need all of the back office people.

    I am sad to see all of these people lose their jobs at a time when unemployment is devastating Michigan.

    It didn't have to be this way. Beyond what the unions contributed, management was in denial about how much capacity was needed to be profitable. Too many dealers, plants, brands, model lines and back office people.

    GM, Ford and Chrysler should have been doing more to right size their businesses long before the current crisis.

    It comes down to the difference between accepting reality and hoping for the best.