GM is the latest business to announce cutbacks amid the coronavirus pandemic.
Detroit-based General Motors told about 69,000 salaried employees globally on Thursday that it will temporarily cut 20% of their salaries as they are attempting to save cash amid the coronavirus pandemic.
The reduced pay, which will begin April 1, will be repaid in a lump sum with interest no later than March 15, 2021, according to a list of actions announced by the company that was obtained by CNBC.
For those who are unable to work from home, which is about 6,500 people, they will be temporarily laid off which the company is calling a “salaried downtime paid absence.” The workers will receive 75% of their pay, keep seniority and retain health care benefits.
In addition to the 20% salary cut, executives are taking additional cuts that reduce their total compensation by at least 25%. The highest paid executives are taking a 30% cut in total compensation. The GM Board of Directors will take a 20% reduction in compensation.
Tough times for our community right now.