More Good Economy News

on Tuesday, February 10, 2009


General Motors announced Tuesday it is cutting 10,000 workers, or 14% of its salaried jobs worldwide. A third of those job losses will be in the United States.

The troubled automaker also said it will cut the pay for its remaining U.S. salaried staff.

GM (GM, Fortune 500), which is preparing to present a long-term viability plan to the Treasury Department next week, said the cutbacks are part of the restructuring plan it submitted to Congress on Dec. 2 when it was first asking Washington for federal assistance.

The company said at that time it intended to cut its U.S. staff by between 22% and 33% by 2012.
Correct me if I'm wrong, but wasn't this whole stimulus thing supposed to create jobs? This couldn't be any more backwards: Government is attempting to intervene and create jobs, yet companies are having to lay off thousands of workers so that they can meet the government's "job creating" regulations.