General Motors told 69,000 officials globally on Thursday that it will temporarily cut 20% of their wages as the carmaker tries to save money amid the coronavirus pandemic.
The reduced salary, which begins April 1, will be repaid in a lump sum with interest no later than March 15, 2021, according to a list of measures announced by the company obtained by CNBC.
About 6,500 US employees who are unable to work from home will in the main be temporarily laid off, which the company calls an “paid staff absence.” The workers will receive 75% of their salary, retain seniority and retain health care benefits.
In addition to the 20% pay cut for white collar workers, managers take further cuts in their cash benefits. The GM Board will reduce the total remuneration by 20%.