General Motors Corp. announced Tuesday, July 15, it will cut its salaried work force by 20 percent and will suspend stock dividends for the first time since 1922.
Bloomberg reported that GM also will sell off billions of dollars worth of assets and will also seek new loans from banks.
The company hopes to raise enough cash to survive a depressed domestic car market. GM saw its overall sales of cars and trucks fall by 16 percent in the first half of this year, and the company stock fell to its lowest level in 53 years.
General Motors officials announced last month that the company will close four truck plants by 2010 and shift production to small, fuel-efficient cars.
Merrill Lynch & Co. officials said on July 2 that GM may need to raise $15 billion and that a Chapter 11 filing is “not impossible” should sales continue to deteriorate.