A severe drop in vehicle sales worldwide and the desperate need to restructure ?for long-term viability" has forced General Motors to confirm that it will be cutting 10,000 jobs by the end of this year.
The job cuts will see the company?s global workforce fall from 73,000 to 63,000 - 3400 of these jobs will come from US operations alone.
As part of its initial restructuring plan, GM has made moves to cut costs wherever possible, including a move to a $1 salary for outgoing Vice President Bob Lutz. This was decided in part to help move the automotive financial aid package through US Congress late last year.
Temporary pay cuts will also be implemented for the majority of US employees, with GM noting that Executives will see cuts of ten percent while "many others" will have their salaries reduced by three to seven percent.
GM has so far received over USD$10 billion in aid with another $4 billion to be provided in the future provided it meets its restructuring obligations for the loan package. GM will continue to do what it must to stay afloat, but the improved odds of long term survival of the brand will likely come as little consolation to the 10,000-odd newly-unemployed workers.