GM to cut 21,000 jobs
28-04-2009
The big American car company General Motors is to cut 21,000 US jobs and phase out its Pontiac brand, as it aims to meet a June 1 deadline to revamp its business. GM has to complete its restructuring by then to gain the government loans it needs to avoid bankruptcy protection.
After shedding Pontiac by the end of 2010, GM will focus on its Chevrolet, Cadillac, Buick and GMC brands. The firm also said it hoped to halve its debts by persuading bondholders to swap US$27 billion of bonds for shares.
GM also wants the US government to swap half its current loans for a 50 percent stake. The government has so far given GM more than $15 billion in loans.
GM has already cut 10,000 US jobs this year and following the latest cuts its American workforce will be reduced to 40,000. Like rivals Ford and Chrysler, GM has seen sales fall sharply in its home market in recent years, a decline that has intensified as the recession has continued.
