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Written by THE ASSOCIATED PRESS
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Tuesday, 30 September 2008 |
Unsold 2008 Suburbans sit at a Chevrolet dealership in Castle Rock, Colo., on Sunday, July 6, 2008. THE ASSOCIATED PRESS/David Zalubowski
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DETROIT - General Motors Corp. says it has notified several employment agencies that it intends to cut contract jobs as it continues to shrink its work force to match lower U.S. sales.
GM spokesman Dan Flores wouldn't say how many contract workers would be cut. He says the cuts began in March and will be made across GM's U.S. facilities.
The cuts come as part of GM's plan to reduce its U.S. white-collar costs by more than 20 per cent. The company had about 32,000 salaried workers in the U.S. at the end of last year.
GM has been cutting vehicle production as its sales have slumped. It plans to close four pickup and SUV plants and says it is working on further cuts at stamping and powertrain factories.
The automaker announced in June that it would close four truck and sport utility vehicle factories by 2011, but later said the closures could come sooner than originally planned. The plants are in Janesville, Wis.; Moraine, Ohio; Oshawa, Ontario; or Toluca, Mexico, would be shuttered early.
The decision will cause the loss of about 8,350 jobs.
Through August, GM's sales are down 18 per cent when compared with the same period in 2007 because of a slumping U.S. market and a shift from pickups and SUVs to smaller, more fuel efficient vehicles.
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Last Updated ( Tuesday, 30 September 2008 )
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