General Motors Corp, the largest US automaker, has unveiled plans to eliminate 10,000 salaried jobs around the world and cut pay by up to 10 per cent in an effort to prove to Washington it is a viable company.
The company is trying to hang on to $13.4 billion in government loans, which could be withdrawn if GM does not come up with a survival plan.
About 3,400 of 29,500 US salaried workers are to be dismissed by May, the Detroit-based automaker said in a statement, Bloomberg financial news reported on Tuesday.
GM head Rick Wagoner, who has cut his salary to $1 a year, said he would review salaries and benefits for foreign employees. In the US, salaries will be cut 10 per cent.
GM has until February 17 to submit its plan to the US Treasury Department that will show how it will reorganise, restore profit and repay US loans by the end of 2011.
Union representatives and bond holders were meeting this week in Detroit to negotiate the plans.
Amidst the year-old US recession, auto sales have dropped to their lowest in more than a decade.