GM to cut 21k jobs in US, 6k jobs in Canada

Written by: Super Admin
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New York, Apr 28: General Motors has confirmed that it will be cutting 21,000 US factory jobs, phasing out Pontiac cars, and offer stocks to US government owing to the government debt.

Apart from this the troubled company said that it will be shutting down six units in the United States, reducing dealership by 42 percent and axe more salaried jobs.

GM Canada amounts to 20 per cent of the company's production and will see a cut of 57 per cent which will reduce its work force to 4,400 from 10,300 by 2014.

These moves are part of a restructuring plan that will allow the auto giant to stay afloat as it may need more federal funds.

Since Dec General Motors has borrowed $15.4 bn to avoid bankruptcy and may be force to file bankruptcy unless bondholders swapped their claims for stock.

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