• by Karl Greenberg , November 6, 2008

When GM announces its third-quarter results today, it's likely that the bad news will include cuts in employment rolls and production that go above and beyond the $15 billion restructuring that is already underway.

CEO Rick Wagoner, who has held the position since 2000, has reportedly sent an email around the company suggesting that more white-collar jobs cuts are in the offing, as are certain benefits like matching contributions to retirement accounts. A company spokesperson said the company is not commenting until today's press conference.

Last summer, the company announced plans to generate $10 billion by the end of next year by cutting truck, body and powertrain capacity as well as reducing U.S. and Canada headcount this year and health-care coverage for U.S. salaried retirees over 65--partially offset by pension increases next year as well as asset sales and financing initiatives to raise additional liquidity of $4-7 billion.

GM had already planned to save $4-5 billion in costs by 2011 via the renegotiated 2007 GM-UAW contract, shuttered operations at four North American truck plants and shift cuts at two others.

The nightmare market has also led to the company considering a merger with Chrysler LLC, which N.Y.-based owner Cerberus Capital is looking to sell. In August, Chrysler said that based on June numbers, it had both cash and securities worth $11.7 billion.

GM, whose sales are off 20.3% through October, is reportedly spending some $1 billion per month, and analysts have said the company will reach its cash limit of around $14 billion in 2009.

Chrysler has already announced a corporate-wide 25% reduction in its workforce--and the firm's agency of record, BBDO, Thursday announced that it is cutting its Detroit office by 145 people.

In separate news, Toyota announced a 6.3% decline in revenue for the six months ending Sept. 30. The company reported that net income decreased by 47.6%.

The company's North America operating income fell by $2.22 billion during the period to $350 million, both because of plummeting sales and the market shift on the continent to compact vehicles. In the '90s and early millennium, the automaker expanded its lineup to SUVs and trucks. The company's Yaris and Corolla compacts have given it record market share of 17% for the first half.

The company said it will focus on crossovers and compacts. Toyota has just launched the Venza crossover in the U.S. market.