GM to cut 10,000 salaried jobs, cut salaried pay

DETROIT -- The Detroit automaker is racing to put together a long-term restructuring plan to present to the government Feb. 17. It has said it needs to cut its U.S. workforce by as much as 31,500 people through 2012.

In the USA, GM's salaried workforce of 29,500 will be cut by about 3,400 by May 1.

Globally, GM says the cuts will vary by region depending on staffing and market conditions.

The U.S. pay reductions go into effect May 1 and will last at least through the end of the year.

The company said executive employees in the United States will have their base pay cut 10% and "many other" salaried employees will see reductions of 3% to 7%.

"These reductions will be made using GM separation programs and policies which provide for severance payments, benefit contributions and outplacement assistance," the company said.

"These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term viability."

The statement noted that the company had outlined the need for staff cuts in its plan to Congress on Dec. 2.