The cuts -- to take effect by year's end -- will result in nearly 5,000 of the company's 32,000 salaried workers leaving the automaker by year's end. A GM official confirmed details of the plan reported by The Wall Street Journal today.

The company said earlier it would reduce its salaried work force spending by more than 20 percent. That includes ending its salaried retirement health coverage for employees over 65 starting Jan. 1. The company also said salaried workers wouldn't get pay raises through the end of 2009.

GM is offering early retirement packages to older salaried workers, taking advantage of an overfunded pension plan to pare down the work force. In the company's media relations department for example, GM is offering the packages to about 40 employees -- and plans to reduce its headcount by 17 positions.

The company official stressed the 15 percent staff reductions may vary by department -- with some departments seeing larger cuts than others. Early retirement offers should go out to white-collar employees by August, with employees deciding by September or October on whether to accept them.

GM said today it would announce second-quarter financial results Friday, including "significant losses."

The automaker earlier said it would boost liquidity by $15 billion by the end of 2009 -- including $5 billion through asset sales and borrowing. Analysts say the company is burning through at least $1 billion a month amid a sharp downturn in light truck sales.

GM has reduced its salaried work force from 44,000 in 2000 to about 32,000 today.

via detnews