GM kills Pontiac, cuts 23,000 jobs
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General Motors today announced plans to cut 23,000 U.S. jobs by 2011, drop its Pontiac brand and slash 40 percent of its dealer network to try to stay out of bankruptcy. CNNMoney reports that GM also announced an offer to its bondholders to swap $27 billion of the company’s unsecured debt for stock.
GM is offering bondholders 225 shares of its stock for every $1,000 it owes the bondholders in principal. The move will greatly dilute the value of GM shares held by current stockholders.
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