GM may cut thousands more jobs

GM may cut thousands more jobs
In an announcement Tuesday, the ailing U.S. automaker is expected to cut production and jobs due to falling domestic sales.


DETROIT (AP) -- General Motors Corp. is expected to cut several thousand salaried jobs and further slash truck production in response to falling U.S. sales and Wall Street's demands for more action to stem its losses, according to people briefed on the plan.

GM Chairman and CEO Rick Wagoner is scheduled to discuss the changes at a news conference Tuesday morning. GM released no further details, but salaried job cuts and cuts to benefits and executive compensation are likely.

The people briefed on the plan say GM will further reduce its truck production to focus more on small cars, and also will likely detail plans to raise more cash to fund its restructuring. The people requested anonymity because the plan was not yet public.

GM has been hammered by high gas prices, the weak economy and a rapid shift in consumer tastes away from trucks and sport utility vehicles. The automaker's sales were down 16% in the first six months of this year, while its stock price has hit 50-year lows in recent weeks.

GM (GM, Fortune 500) announced last month it would close four truck and SUV plants and boost production of several cars. But analysts have suggested the company needs to do more as sales continue to slide, including cutting more jobs and raising cash for a turnaround

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