General Motors Corp. (GM) announced Monday that it would cut 1,600 white-collar workers this week as a step to cut costs that could help the automaker qualify for more government aid.
GM North American President Troy Clarke announced the decision in an e-mail sent to GM's employees.
According to sources of the company, most of the workers to be laid off this time will be in units located in the areas around the auto city of Detroit and this step may help the company to be qualified for more government aid.
GM's CEO Handerson said Sunday that the company is working on a restructuring plan to avoid bankruptcy that will involve deeper cuts in a bid to convince the government to lend the automaker up to 16.6 billion U.S. dollars more.
Under the terms of its federal loans, GM submitted a restructuring plan to the government in February that said it would close 14 of its 47 parts and assembly plants by 2012 -- five more than previously planned. GM also said it would cut 47,000 more of its 244,000 employees worldwide.