GM to Finish White-Collar Lay-Offs by October

Bankrupt American manufacturer GM is continuing its restructuring efforts and hopes to exit Chapter 11, despite the fact that many see their task as being much more difficult than the one Chrysler had to face. True to the lay-off program announced a few months before entering bankruptcy, GM is continuing to cut jobs, alongside dealers and brands.

According to a company spokesman, quoted by Autonews, GM plans to end the 20 percent white-collar personnel reduction by October. The plan was relayed to the workers via a letter sent out this morning.

"This is what we've talked about -- a leaner organization with fewer levels of management. You start to see what the new organization will look like," Tom Wilkinson, GM spokesman was quoted as saying by the source.

The 20 percent cut in personnel will most likely come as a result of the selling of Hummer, Saab and Saturn. In addition, the manufacturer will reduce its senior executives head count by no less than 35 percent.

By October, GM will thus have 23,500 white-collar employees in the United States. At the beginning of the year, that figure stood at 29,600. Those targeted by the cuts have until August to decide whether they will go for the six months pay severance package. Of course, some of them will not have that option, as GM is also considering firing.

In the same note, GM announced last week it has completed the restructuring process of its dealership network. Some 1,100 dealers will be closed in the following months.

"Every GM dealer has now been contacted and is in receipt of the appropriate documents; there is no need for further wind-down or participation agreements. Our network restructuring process … is complete," Mark LaNeve, GM's sales vice president said.