The letter shown below was sent out to GM executives as an advisory that more layoffs will be required. GM has offered buyouts in a program designed to reduce its workforce and more employees than expected took the offer. Sadly, even with the additional takers it is not enough and more folks most go. The gist of the letter is that with more "involuntary separations" looming, staff might want to consider a 'take the money and run' strategy.
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US Based GM Executives -
As you know, we are in the final stages of the consideration period for the 2008 Salaried Retirement Window. Our results to date are good, having received more acceptances than we initially predicted. Unfortunately, business conditions have deteriorated since the program was initiated. The global credit crisis has had a dramatic impact upon the industry at large and new vehicle markets in North America and Western Europe have contracted severely. The global economic outlook remains very concerning. As a result, actions are being taken throughout GM's global operations to address our increasing need to conserve cash. Here in the US, we need to reduce our salaried and contract workforce by even more than we anticipated. In this regard, we expect to initiate involuntary separations in some areas of the business, late this year and early in 2009. Additional changes in active salaried employee benefits also will be announced in a Total Compensation Journal to be released today. These will include suspension of the stock savings match as well as suspension of other reimbursement programs. We regret needing to take these actions, but they are necessary based upon current business conditions.
It is important for those who are still considering a retirement window offering to be aware of these changes. This may be an ideal time for them to exit the organization under provisions that are generally regarded as very positive by those who have already gone through the process of consideration.
As always, your continued support and leadership are truly valued during these difficult times.
Rick Wagoner Fritz Henderson
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