GM letter says more job cuts needed

DETROIT, Oct. 23 (UPI) -- Falling sales are forcing U.S. automaker General Motors Corp. to cut more salaried positions, an in-house letter to executives said.

The company, which this week said it was exploring the possibility of selling its global after-market parts supplier ACDelco, said it also expected to cut salaried worker benefits, including a cessation of its current dollar-for-dollar 401(k) pension plan contributions, The Wall Street Journal reported Thursday.

"The global credit crisis has had a dramatic impact upon the industry at large," the message to executives said. "And new vehicle markets in North America and Western Europe have contracted severely."

"The global economic outlook remains very concerning," the letter said.

GM reported a $15 billion loss in the second quarter, when its cash reserves shrank by about $1 billion a month, the Journal reported.

The letter said the company was taking action "to address our increasing need to conserve cash."

GM announced earlier it planned to reduce its salaried staff by 15 percent, or 5,000 workers, under a voluntary job buyout program that ends Friday. More cuts were needed, in spite of the buyout attracting more participants than GM expected, the Journal reported.