One week before a deadline to submit a restructuring plan to the government, which it must do to keep billions of dollars in loans, General Motors said that it would lay off 10,000 salaried workers worldwide this year.
Additionally, General Motors said it would reduce the pay for those who remain by as much as 10%. The pay of U.S. executives will be cut by 10%; other salaried workers will see cuts of 3 - 7%.
The deadline of Feb. 17 is for a required plan necessary due to the terms of the $9.4 billion in low-interest government loans to General Motors.
Most of the cuts are expected to take place by May 1, and would follow GM's severance policies; there will be no buyout or early retirement packages offered as GM has done in the recent past.
In terms of buyouts and early retirement, the announcement comes a week after GM extended further buyout and early retirement offers to its hourly worker and three months after it eliminated 5,100 salaried jobs, also through buyouts.
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