GM Lays Off Several Hundred Employees

[Flabbergasted]

http://www.forbes.com/entrepreneurs/feeds/ap/2006/03/28/ap2628097.html
By DEE-ANN DURBIN , 03.28.2006, 02:35 PM

General Motors Corp. laid off several hundred white-collar workers Tuesday as part of a plan to bring its ailing North American operations back to profitability.

It was the first round of salaried cuts this year for the world's largest automaker. GM didn't give an exact figure but said fewer than 500 jobs were cut Tuesday at 30 locations across the United States, including factories and engineering centers.

A cut of just less than 500 jobs would represent about 1.3 percent of GM's U.S. salaried work force of 36,000. GM has said it plans to cut 7 percent of its salaried work force this year, or 2,500 jobs, so more cuts are on the way.

GM shares rose 20 cents to $23.13 in afternoon trading on the New York Stock Exchange.

Detroit-based GM announced a restructuring plan in November in the face of mounting losses. Under the plan, GM wants to cut 30,000 U.S. hourly workers and close 12 facilities by 2008. GM lost $10.6 billion in 2005, largely because of increased competition and rising costs in North America.