The Marketplace Reader

GM to salaried workers: Why not retire now?

Melissa Kaplan Aug 29, 2008

General Motors has been looking for ways to cut its workforce down for a long time. Now it’s offering 9,000 salaried workers early retirement packages. CEO Rick Wagoner needs the retirements to get $1.5 billion in salaried-worker cost cuts to meet his goals and compensate for $15.5 billion in losses last quarter. The salaried employees have 45 days to consider the proposal, but the plan seems to be working — Wagoner has already persuaded 53,000 union workers to accept early retirement or buyouts.

GM wants to reduce the payroll by 15 percent. Canadian workers are ineligible.

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