GM to Layoff Several Hundred Salaried Employees

In its second major labor move in a week, General Motors will continue its restructuring by laying off several hundred U.S. salaried employees.

General Motors Corp. said Tuesday that it is laying off several hundred U.S. salaried workers as part of a plan to bring its North American operations back to profitability. The move comes after GM previously announce billion dollar losses for 2005. 

Robert Herta, a spokesman for GM told the Associated Press that he couldn't give an exact figure, but the  automaker plans to cut fewer than 500 workers at 30 locations across the country, including factories and engineering centers.

The cuts represent around 1.3 percent of GM's U.S. salaried work force of 36,000. The company has said it plans to cut 7 percent of its salaried work force this year.

The layoffs are the automaker's second major jobs-related announcement within the last week. On Wednesday, GM reached an agreement with union representatives to offer buyouts to U.S. hourly workers. The buyouts range between $35,000 and $140,000. 

The moves are part of a restructuring plan announced last fall in the face of mounting losses and low sales. Under the plan, GM wants to cut 30,000 U.S. hourly workers and close 12 facilities by 2008. GM lost $10.6 billion in 2005, largely because of declining sales and rising costs in North America.

More in Home