The Fed has asked GM to come up with a survival plan, in order to receive the billions of survival aid it has asked for. What else can be the big picture of a survival plan of an organization in such situation? It is simply the Layoffs!
GM is to cut thousands of white-collar jobs, as promised to the government. In US the first round of layoffs is likely to be of around 3,400 jobs. GM also has plans to cut around 4,700 jobs all over the world. Presently GM is surviving on the $13.4 billion loan given by the government. Even though it is in tough times and has requested for $16.6 billions more.
GM is also enticing its blue-collar workers to leave the organization. The enticement plans include buyouts, early retirement and incentives, and money vouchers to buy a GM model car.
GM is also going to cut some of its eight brands, meaning more layoffs.