General Motors start taking action on cutting jobs

General Motors start taking action on cutting jobs

World’s largest maker of automobiles General Motors has confirmed that they have begin taking action on their plans to cut their workforce to cut costs and get back to profitability.

The company said that they cut several hundred salaried jobs on Tuesday with the aim of slashing as many as 2500 jobs this year alone. These job cuts were announced in 30 locations around the country and the employees were told to let go off their positions in the company immediately.

Market experts have expressed their concerns on whether these cost cuttings would indeed help the company cut costs and get back to profitability in the coming years.

These latest job cuts just come a couple of days after GM reached a deal with the United Auto Workers union to offer early retirement to more than 100,000 hourly workers. GM is planning to eliminate 30,000 jobs and close 12 plants through 2008.

GM had made losses of close to $10.6 billion in 2005 and is facing serious competition in their domestic market from rivals from Japan and South Korea.