GM to cut executive ranks by 34 percent

GM to cut executive ranks by 34 percent
Jun 17, 2009 18:43
XIAOBAIHE Points: Join Date: Jun 9, 2009 Status: offline	06/16/2009, 5:06 PMBy Drew Johnson General Motors has shaken up its management team over the last few months, but GM CEO Fritz Henderson says several more key changes are on the way. Henderson revealed on Tuesday that the Michigan automaker plans to reduce its global management team by 34 percent by year’s end. GM’s management team has become bloated over the past several years, but the Detroit-based automaker will remedy that situation by the end of 2009. “GM will be making changes both in the structure and processes to run the business, which includes for example, reducing executive manpower by 34 percent from year-end 2008 through 2009,” Henderson said told Automotive News. “Yes, there will be significant change.” In the U.S., Henderson expects GM to shed about 20 percent of its salaried workforce by year’s end. GM started 2009 with about 29,000 salaried workers but will end the year with about 23,500. GM has already seen a number of key executives leave the company this year. Former GM CEO Rick Wagoner was ousted by the Obama administration and most recently purchasing boss Bo Andersson left GM to take up a position with Russia’s GAZ. GM’s Bob Lutz will exit the company at the end of 2009.

Jun 17, 2009 18:43

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06/16/2009, 5:06 PMBy Drew Johnson

General Motors has shaken up its management team over the last few months, but GM CEO Fritz Henderson says several more key changes are on the way. Henderson revealed on Tuesday that the Michigan automaker plans to reduce its global management team by 34 percent by year’s end.

GM’s management team has become bloated over the past several years, but the Detroit-based automaker will remedy that situation by the end of 2009. “GM will be making changes both in the structure and processes to run the business, which includes for example, reducing executive manpower by 34 percent from year-end 2008 through 2009,” Henderson said told Automotive News. “Yes, there will be significant change.”

In the U.S., Henderson expects GM to shed about 20 percent of its salaried workforce by year’s end. GM started 2009 with about 29,000 salaried workers but will end the year with about 23,500.

GM has already seen a number of key executives leave the company this year. Former GM CEO Rick Wagoner was ousted by the Obama administration and most recently purchasing boss Bo Andersson left GM to take up a position with Russia’s GAZ. GM’s Bob Lutz will exit the company at the end of 2009.

Jun 18, 2009 13:32	#1
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	Good for GM. More of these corporations need to unload some of their top-heavy fat cats also. It's my understanding after reading a report several months ago that some of these characters wouldn't even qualify to flip hamburgers.

Jun 18, 2009 19:35	#2
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Yes Gary, GM needs lean and quick rabbit as a leader to compete with Toyota, Honda, etc.

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