GM still deciding on ME job cuts - spokesperson
by This email address is being protected from spam bots, you need Javascript enabled to view it on Wednesday, 11 February 2009
General Motors chiefs have yet to decide whether plans to axe 10,000 staff globally will affect the US carmaker’s Middle East operation.
“We do not have any details at this point in time,” Saada Hammad, communications and public relations manager for General Motors Middle East, told Arabian Business on Wednesday.
“When we have information we will make it available but at the moment there are no details that we can share.”
Hammad did not disclose if or when General Motors Middle East will make an announcement on how the job cuts will impact the company’s 200 workers in this region.
On Tuesday, General Motors revealed it was shedding 10,000 workers as the outlook for the global automotive industry worsens. It also revealed plans to reduce other employees’ pay by between 3-10 percent.
According to the firm, executive salaries will be temporarily cut by 10 percent. Meanwhile, a three to seven percent cut for most other white-collar workers will be introduced.
Among the 10,000 job cuts, General Motors is expected to shed 3,400 of its US workers by May 1.
Following the job cuts announcement, General Motors chief executive Rick Wagoner told reporters that redundancies and salary reductions were, “the kind of things that we need to do to get this viability plan in shape and respond to this tough market condition.”
In December, General Motors arranged a $13.4bn government loan on the condition it produced a business plan showing it is a viable long-term operation. It’s understood the job and salary cuts will be carried out to secure the company’s future.
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