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General Motors, which emerged from bankruptcy on Friday, now must tackle its next thorny problem — its own management team.
The company’s chief executive, Fritz Henderson, plans to ask more than 400 of the 1,300 executives in the United States to resign or retire.
“It’s a very painful process,” Mr. Henderson said in an interview on Friday, just hours after G.M. emerged from its 40-day tour through Chapter 11. “We don’t have a lot of bad executives. We just have too many of them.”
The cuts pale in comparison to the tens of thousands of factory workers and salaried employees who have been eliminated during G.M.’s long decline.
But even as G.M. racked up huge losses in recent years, the company hardly touched its bloated management ranks, where even the most obscure vice presidents were given their own public relations person…
G.M. has traditionally been more insular than its crosstown rivals Ford and Chrysler, and rarely fired senior executives, even if their business units performed poorly.
Instead, executives would be moved to a different job, often overseas.
But now that G.M. is a government-owned entity that has received $50 billion in federal loans, the company cannot afford “business as usual,” Mr. Henderson said.
RTFA. Ain’t a bad start. Hope they pick and choose well – who they keep, who they nudge out the door.
GM isn’t building anything I’d want to own – yet – but, I’d like to be able to give them the chance.