General Motors will trim down its workforce by fourteen percent around the globe by the end of this year and will also slash down the salaries of those who will remain in the car company.

From the current number of 73,000 salaried workforces, they will have a dreadful decline to a difference of 63,000 that is according to the statement made by General Motors. In the United States, approximately 3,400 of the car company’s 29,500 salaried workforces, mostly in southeast Michigan, will be removed by the first of May. These workers are eligible to receive severance pay and some financial assistance as declared by General Motors. The rest of the affected workforces will be from the European offices and from other parts of the world.

The remaining staff will experience most likely pay cut offs in between three to ten percent for the year.

These strategies are used and are presented as the latest move by General Motors to fix its operations ahead of the deadline of the viability plan to be submitted to the US government’s Department of Treasury as to preserve its agreement to provide $13.4 billion from its federal loans.

General Motors sales output last January plunged by 49 percent and according to the automaker, it is anticipated due to the economic turmoil. So with this, GM executives have decided to take initial actions for a more efficient and quick cost-cutting measures.