According to reports by Bloomberg, in its February 17 progress account to the government, General Motors Corp intends including its plans of slashing 5,000 salaried positions. The move will part of company’s cost reduction effort, which will allow it to keep $13.4 billion in federal aid by the scheduled deadline – March 31.

In December 2008, GM informed policymakers about its likely collapse in near future, without government aid. As such, the company was handed out emergency funds to the tune of $9.4 billion as part of federal rescue package.

With the automaker’s sales plunging 49 percent in January, Dennis Virag - Michigan’s Automotive Consulting Group President - said that GM has no choice but to resort to “aggressive” measures, like massive job-cuts of both salaried and union workers, to prove its commercial viability to the government.

The proposed layoffs go with last year’s layoff of more than 5,000 salaried workers. Earlier this week, GM announced its buyout offer to nearly 62,000 union workers, in addition to undertaking negotiations with the United Auto Workers about cutbacks in reimbursement.

Owing to a widespread slump in demand, the positions to be cut will come from almost all of GM’s departments globally. Commenting on the extent of the cuts, Virag noted: “The decline is a global situation, so the cuts need to be made on a worldwide basis.”