GM to see 5,100 salaried job losses in 2009

Crisis-ridden General Motors will be handing over pink slips to 5,100 salaried employees this year, in addition to 23,000 job cuts announced earlier.

The once mighty American auto maker filed for bankruptcy protection on Monday and the ensuing restructuring efforts is expected to see thousands of job losses.

General Motors has said that the 5,100 job cuts would be happening in North America this year.

"In line with our structural cost reductions and the reinvention of our company, GM will substantially reduce salaried employment in North America, from its current 32,300 to about 27,200.

"Almost all of these reductions are expected to take place in 2009," the car maker said in a statement on Monday.

The revamping initiatives would affect 4,000 or 15 per cent of the 27,400 salaried employees in the US.

Faced with massive losses and tumbling sales, General Motors in April announced that it would trim its hourly workforce by as many as 23,000 people by 2011.

Last year, the entity's hourly workforce strength stood at 61,000 and the figure is anticipated to come down to 40,000 in 2010.

By the start of 2011, the total number is expected to be about 38,000.

"...Hourly employment levels will be reduced from about 61,000 in 2008 to 40,000 in 2010, and level off at about 38,000 starting in 2011.

"This planned reduction is primarily the result of the previously discussed operational efficiencies, nameplate reductions, and plant closings," General Motors had said in April.

On Monday, the car maker said that it would reduce its facilities from 47 in 2008 to 34 by the end of next year.

"The manufacturing plan reduces GM's total number of assembly, power train and stamping facilities in the US from 47 in 2008 to 34 by the end of 2010 and 33 by 2012," General Motors said in a separate statement yesterday.

General Motors has also said that it would build a small car at one of its US assembly plans on "standby capacity status".

The iconic car maker which has sought bankruptcy protection under Chapter 11, incurred losses to the tune of $30 billion last year.