Detroit’s General Motors, the largest U.S. automaker, will cut 10,000 salaried jobs globally and reduce pay by as much as 10 percent to slash costs and prove its viability to keep $13.4 billion in government loans. About 3,400 of GM’s 29,500 U.S. salaried workers will be dismissed by May 1. U.S. salaries will be cut temporarily by 10 percent for executives and by 3 percent to 7 percent for most others. GM said it’s reviewing salaries and benefits abroad. GM started offering buyouts to 62,000 union workers last week and is in talks with the UAW about trimming benefits.
GM Chief Executive Rick Wagoner reduced his salary to $1 and other executives agreed to pay cuts as conditions of the government loans. [Bloomberg]
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