General Motors (GM) in America has reportedly suspended several of its employee benefits programmes in a bid to cut costs during the economic downturn affecting the industry.
The car manufacturer said it is trying to eliminate 15% of the costs associated with its white-collar work force in the U.S. and Canada by November 1.
It is reported that GM in North America will suspend its tuition reimbursement and adoption assistance schemes as of the end of this year, as well as temporarily stopping company contributions to its 401(k) retirement savings programme. The company usually matches up to 4% of an employee’s contribution.
GM is also cutting costs by inviting some white-collar workers onto an early retirement programme. Tom Wilkinson, a spokesman for General Motors in America, said that this ‘buyout’ for salaried employers has been “well received” though he would not say how many workers have accepted the offer.