47000 jobs – and a factor of 7
by Tom on February 17, 2009
in Market Musings
Ouch, this is not good. GM needs $16 Billion now, they are going to lay off 47,000 and it appears that there is typically a fall out of 7 more jobs for each one?
Calculated Risk: GM asks for $16.6 billion, to cut 47,000 Jobs
General Motors Corp. on Tuesday said it will need as much as $16.6 billion in additional aid from the U.S. government and could run out of money as soon as next month if it doesn’t receive at least some of that funding.[GM] … laid out a plan to close more factories, eliminate thousands of dealerships and slash 47,000 jobs this year around the world.
GM, however, said it failed to strike critical deals with the United Auto Workers union and bondholders to reduce labor costs and shrink its $47 billion debt load. Negotiations with both parties are expected to continue.
