General Motors told about 69,000 salaried employees globally on Thursday that it will temporarily cut 20% of their salaries as the automaker attempts to save cash amid the coronavirus pandemic.
The reduced pay, which will begin April 1, will be repaid in a lump sum with interest no later than March 15, 2021, according to a list of actions announced by the company that was obtained by CNBC.
About 6,500 U.S. employees who cannot work from home will be essentially temporarily laid-off, which the company is calling a “salaried downtime paid absence.” The workers will receive 75% of their pay, keep seniority and retain health care benefits.
In addition to the 20% salary cut for white collar workers, executives are taking additional cuts that reduce their total compensation by at least 25%. The highest paid executives are taking a 30% cut in total compensation. The GM Board of Directors will take a 20% reduction in compensation.