GM cuts 10,000 employees

General Motors Corp. will trim its salaried workforce by about 10,000 employees as part of its restructuring plan, the company announced this morning. The car and truck maker will eliminate 3,400 of its 29,500 salaried employees in the U.S. by May 1st.

Executives will see their pay cut by 10% beginning May 1 and continuing throughout the year, while other salaried employees will have their wages reduced between 3% and 7%. The company must submit a second viability plan to the federal government by February 17, and a final plan demonstrating its long-term viability by March 31.

“These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term viability,” the company said.