GM May Cut More Jobs, Brands

Only Cadillac, Chevy deemed safe as automaker struggles to return to profitability
By Kevin Spak,  Newser Staff
Posted Jul 7, 2008 9:01 AM CDT
General Motors sales consultant Mike Bechtolt hangs a banner in front of the GM dealership in Portland, Ore., Tuesday, July 1, 2008.   (AP Photo/Don Ryan)
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(Newser) – GM is considering slashing thousands of white collar jobs, while simultaneously selling off or discontinuing even more brands, the Wall Street Journal reports, in a furious attempt to return to profitability. For years GM has resisted shrinking its large stable of brands, even as rivals Ford and Chrysler committed to downsizing, but with its stock price at a 50-year low, a shakeup is in the wind.

Of the company’s eight lines, only Cadillac and Chevrolet are deemed safe, while Hummer is already on the trading block. The job cuts will likely be approved in an early August board meeting, resolving the middle-management glut that has long galled senior leadership. But before anything else, GM needs to find cash—analysts say it’ll need $10 billion to $15 billion to continue operations.