General Motors continues to feel the pinch of a bleak automotive industry outlook as it announced plans to reduce its workforce by cutting 5,000 salaried jobs. The workforce reduction is part of a plan announced earlier this month that aims to cut costs by as $10 billion by the end of 2009. The cuts will take effect by year’s end.
Other cost-cutting plans include the ending its salaried retirement health coverage for employees over 65 starting Jan. 1. Salaried workers will also not receive pay raises through the end of 2009. GM is also offering an early retirement package to older salaried workers, taking advantage of an overfunded pension plan to reduce the workforce.
GM has reduced its salaried workforce from 44,000 in 2000 to about 32,000 today.