General Motors Corp. has told its white-collar workers the company will suspend its matching contributions to their 401(k) retirement savings accounts, starting Jan. 1. According to a report in the Detroit News, the automaker will also reduce the amount of severance benefits it pays.
GM had been contributing 20 cents for each $1 salaried employees put into the company's 401(k) program. This amount was the result of an April 2005 reduction from the company's previous contribution of 50 cents on the dollar. The changes affect 36,000 U.S. salaried employees.