Beginning from May 1, in the U.S., executive employees will have their base pay reduced by 10%, and many other salaried employees will see reductions of 3 to 7%.
General Motors said that the job cuts are part of the company's restructuring plan that was submitted to Congress on December 2, 2008. The announcement this week begins implementation of this aspect of the plan. "These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term," said the automaker in a statement.