Leading auto major, General Motors (GM) has decided to slash 21,000 jobs in US and 5,900 in Canada by next year. The troubled company has also announced to shut down six more US units, bringing down the plants to 34 by 2010. The auto company also planned to reduce dealership by 42 percent from 6,246 to 3,605. In order to stay out of the bankruptcy, General Motors has borrowed $15.4 billion since December 2008.

 

Apart from cutting jobs, GM has also decided to phase out its famous Pontiac brand. The company said that it might also sell or phase out said its Hummer, Saturn and Saab brands by next year. According to a statement from GM, the company will require an additional fund of $11.6 billion from the  government to keep itself alive in the market.

 

The new job cuts will put GM's work force from 61,000 in 2008 to 40,000 in 2010, a reduction of 34 percent. The Canadian subsidiary of GM has also announced to reduce 57 percent work force by 2014. GM (Canada) will also shut down about 310 dealerships by the end of 2010. The recent decision has been taken to make GM eligible for long-term loans from the US and Canadian governments.