General Motors Trims Down Its Budget

In turn of the large auto maker’s decline in sales, CEO Rick Wagoner is preparing to make a second announcement of the corporations’ revision of its infrastructure. The purpose of this plan is to cut costs and regain investor confidence.

At the forefront of the cost cutting are the jobs of GM’s white collar workers such as engineers and managers. As a result of this news, GM shares did regain their position by as much as 5%.

Included in the plan to cut costs is also the trimming down of its vehicle lineup that some would argue that a lot of it is a large overlap. Engineers have been halted on the design of the companies’ next generation of trucks such as the Silverado and Yukon. The staff of designers who will remain on board after the lay offs will be designated to work on small car innovations in order to create a product line that compliments today’s marketplace.