Bonds News

GM may cut thousands of salaried workers-report

CHICAGO, Feb 7 (Reuters) - General Motors Corp. GM.N is developing a plan to fire up to 5,000 salaried employees as it tries to cut costs by a March 31 deadline to keep $13.4 billion in U.S. government aid, according to a Bloomberg report.

The total could match the number of salaried positions GM slashed in 2008, the report said, citing people familiar with the plan. The company will include the plan in a Feb. 17 progress report to the U.S. government.

A spokesman for GM was not immediately available to comment on the report.

GM, which saw its sales drop 49 percent in January, told policymakers in December that it faced possible near-term collapse without government aid. The company has received $9.4 billion in emergency funding as part of a rescue plan the U.S. government approved in December.

The company has until March 31 to demonstrate to the government that it can be commercially viable. (Reporting by Mark Weinraub; Editing by Eric Beech)