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Will the Last Person Out Shut Off GM’s Lights?

Automaker planning to trim 10,000 more salaried jobs

by on Feb.10, 2009

GM employment is dropping faster than its stock price

GM employment is dropping faster than its stock price

In the broader scheme of things, during the current recession, the raw numbers might not be all that significant anymore, but it’s hard to escape the implications when General Motors announces plans to trim yet another 10,000 jobs.

Today’s news will bring to just 73,000 the total white-collar workforce struggling to keep the automaker going, a fraction of the total just five years ago. The automaker, in a release, said the cuts are a critical component in the corporate restructuring plan required to win another tranche of federal loans.

GM must submit an interim viability plan to Washington on February 17th, with a broader turnaround plan due by March 31st. If the plans are approved, the company could receive the additional $4 billion it has been seeking.

There’s no question that the automaker has traditional been bloated and inefficient, according to Dan Gorrell, an independent analyst from Los Angeles. But when does the cutting reaches the point of no return, observers fret. Already, GM is struggling to man its various product development programs, marketing and other operations.

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