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GM to lay off 20% of US and Canada workers, cut truck production July 15, 2008

Posted by Mark Blei in : Uncategorized , trackback

General Motors said Tuesday it will reduce its white-collar workforce, suspend its dividend, reduce spending on marketing and engineering, and make more production cutbacks.

Rick Wagoner, the automaker’s chair and chief executive officer, informed employees of the cuts during a teleconference from Detroit.

GM said it wants to save about $15 billion US in cash through the end of 2009

The moves announced Tuesday are the second round of slashing at the automaker in two months. On June 3, it announced plans to close its Oshawa, Ont., truck plant, and three others.

The company said then it was shifting away from trucks and sport utility vehicles to focus on smaller car production in response to shifting consumer demand. Higher gasoline prices have prompted buyers to shun big vehicles in favour of more fuel-efficient automobiles.

GM also said at the time that it was reviewing the future of its Hummer brand.

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