Crunch time

has announced that it will cut around 10,000 salaried jobs globally and cut pay by up to 10 per cent in an effort to secure its long-term viability.

The Detroit-based company said that the actions were a strategic response to a ‘severe drop’ in vehicle sales worldwide, which continue to tumble amid the current financial crisis.

With operations in 34 countries, the car maker is hoping to stabilise its financial situation and prove its viability to the US government in the wake of submitting its restructuring plan to congress in December last year.

In a statement, the company announced that it will be reducing its headcount from the current level of 73,000 to approximately 63,000 from its global operations. Around 3,400 of these will be in the US, with the majority of cuts to be implemented by 1 May 2009.

GM also announced a temporary pay reduction for most of its US salaried employees. Executives will have their base pay reduced by 10 per cent and a large number of other salaried employees will see a reduction to their pay of between 3 per cent and 7 per cent.

Figures for GM job losses in the UK are yet to be announced, although the company has said that cuts will vary by global region, depending on the staffing levels in the country and market conditions.

In a further blow to the global automotive industry, British luxury car maker Bentley, whose UK base is in Cheshire, will also be reducing staff salaries by 10 per cent and cutting around 220 jobs.