General Motors Co., trying to shrink itself after emerging from bankruptcy in July, says it will eliminate 1,000 salaried positions in the U.S. by Oct. 1, after the auto maker’s buyout program fell short of its goal.
According to GM, 1,900 white-collar workers took the buyout offer, which included a benefits package for those electing to retire and benefits and six months of pay and job transition assistance for those choosing to quit.
GM’s North American restructuring plan calls for 4,400 staff cuts this year as it pares down to 30,800 active salaried workers in the region. In the U.S., white-collar employment is expected to drop by 3,400 to 26,250 this year, according to GM’s April 27 restructuring plan.
Global salaried positions will decline by 10,000, while the auto maker will trim its uppermost executive ranks in North America from 1,300 to 1,100.
Responding to a financial meltdown during the worst new-vehicle sales markets in decades, GM announced plans earlier this year to jettison four brands in the U.S., retaining Chevrolet, Cadillac, GMC and Buick.
The auto maker also accelerated a plan to downsize its U.S. powertrain, stamping and assembly operations to 31 sites by 2012 from 47 in 2008, compared with an earlier goal of 33 sites in the same timeframe.
GM has not turned an annual profit since 2004, losing an estimated $88 billion under the former General Motors Corp. since that time.