GM to cut 23,000 jobs; to phase out Pontiac brand by 2010 | autos | Hindustan Times
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GM to cut 23,000 jobs; to phase out Pontiac brand by 2010

autos Updated: Apr 27, 2009 22:15 IST

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Battling to avert a possible bankruptcy, General Motors will cut 23,000 jobs in the US, the car maker said.

The auto maker would be bringing down the US dealerships by nearly 3,000 and would phase out Pontiac brand by 2010.

Announcing the updated viability plan on Monday, GM said it expects to reduce debt by at least $20 billion through various actions, including bond exchange offer.

"US hourly employment levels are projected to be reduced from about 61,000 in 2008 to 40,000 in 2010, a 34 per cent reduction, and level off at about 38,000 starting in 2011.

"This further planned reduction of an additional 7,000 to 8,000 employees from the February 17 Plan is primarily the result of.... Operational efficiencies, nameplate reductions and plant closings," the company said in a statement.

GM pointed out it anticipates further decline in salaried and executive employment.

The car maker which has been severely hit by the economic turmoil would be looking to reduce its US dealer count from "6,246 in 2008 to 3,605 by the end of 2010".

Moreover, the company would be bringing down the number of nameplates to 34 in 2010 compared to 48 last year.

"GM in the US will focus its resources on four core brands, Chevrolet, Cadillac, Buick and GMC. The Pontiac brand will be phased out by the end of 2010," it noted.