General Motors has toady announced it would make further job cuts throughout its European operation, cutting 1,500 salaried workers next year in an attempt to return it to profitability.

The company says it will cut 10% of its workforce next year, on top of a 10% reduction this year from a current workforce of 16,700. More than 2,000 jobs have been cut at Vauxhall this year with the closure of the Luton plant.

The job cuts are part of GM's restructuring plan, Project Olympia, for its European unit, which suffered £324.4m ($463m) in losses last year amid heavy competition. Project Olympia's goal is to cut production capacity by 15% and more than 5,000 jobs.

A Vauxhall statement reads: "Across Europe, GME will be targeting a 10% reduction of the salaried workforce in 2002, similar to the actions we've taken in the past year. At this time it's not possible to quantify the exact impact it will have in the UK since each company has unique business structures. Therefore different opportunties will arise as Olympia and ongoing efficiency improvement measures at all locations are implemented. But we will certainly be expected to contribute."

  • Ford is also preparing drastic job cuts in its American operations and plant closures, according to the FT today.