GM Cuts Salaries For Thousands Of Employees To Save Cash

General Motors has announced that they're temporarily cutting pay for thousands of salaried workers to save cash during the coronavirus crisis. Their health care benefits will not be affected.

Roughly 69,000 white-collar employees will defer 20% of their cash compensation starting Wednesday, but will get the money back with 6% interest by March 2021. Senior leaders will see their compensation reduced 30% while other executives will get a 25% reduction, the company said. The employee's health care benefits will not be affected at this time 🙏🏾

GM spokesman David Barnas: “GM’s business and its balance sheet was very strong before the COVID-19 outbreak and the steps we are taking now will help ensure that we can regain our momentum as quickly as possible after this crisis is over.”

To finish things up, about 6,500 salaried GM employees in the US, most of who can't work remotely, will go on leave under a “Salaried Downtime Paid Absence” program and they’ll get 75% of their pay, according to GM.

This all comes after Ford said on Thursday that its top 300 executives would defer 20%-50% of their salaries for at least five months starting May 1 and Ford executive chairman Bill Ford is giving up all of his salary during the period.

Photo: Getty

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