GM says 35,000 workers accept redundancy

DETROIT - General Motors Corp. said on Monday that 35,000 workers had accepted buyout and early retirement offers, exceeding most analysts' expectations and putting the automaker two years ahead of schedule on planned job cuts.

Also, Delphi Corp., a former GM parts unit that has filed for bankruptcy, said 12,600 hourly employees agreed to retire under an attrition plan offered as part of an agreement with GM and United Auto Workers union.

GM said that, owing to the success of the buyout programmes, it is increasing its targeted reduction in structural costs in North America to at least US$8 billion ($13.4 billion) annually by the end of 2006 from US$7 billion.

The staff reduction programmes are part of the No.1 automaker's sweeping restructuring strategy to restore profits after losing US$10.5 billion last year.

"These moves have given us a fast start toward achieving our stated objective of reducing GM's global structural cost from approximately 34 per cent of revenue in 2005, to 25 per cent of revenue by 2010 and setting us up to be successful for years to come," GM Chief Executive Rick Wagoner said in a statement.

- REUTERS