&to=http:// english.pravda.ru/comp/2002/09/25/37203.html ' target=_blank>General Motors Corp. said Thursday it will slash 12,000 jobs from its money-losing European operations -- nearly one in five of its jobs there -- by the end of 2006 in order to save $617 million per year.
GM Europe said the shakeup of the &to=http:// english.pravda.ru/comp/2003/03/18/44568.html ' target=_blank>Opel, Saab and Vauxhall operations was necessary amid sluggish demand growth, a growing challenge from both European and Asian brands and fierce price competition.
Most of the cuts will come in Germany, where the company is burdened with high labor costs due to German labor practices. In addition to factory jobs, some white-collar engineers will go too, the company said, informed Detroit Free Press.
According to the Bloomberg, the planned cuts suggest that concern over unemployment, which reached a five-year high last month, will crimp growth in the domestic economy. Consumer spending hasn't increased more than 0.1 percent in the past seven quarters.