GM … the new Dell?

General Motors Corp. said Friday it lost $2.5 billion in the third quarter and warned that it could run out of cash in 2009 if the U.S. economic slump continues and it doesn't get government aid, according to the Associated Press.

GM announced it would improve liquidity by $5 billion by the end of next year by cutting capital spending, reducing sales promotions, and further cutting production in the first quarter. The company also suspended its matching contribution for employee 401K plans, and suspended tuition reimbursement. In addition, salaried employees will not get incentive pay next year for their work in 2008. GM increased its plan to reduce salaried worker costs to 30 percent. During the summer, the company announced a 20 percent cut.

The new paradigm in business seems to be taking away employee benefits (see the Dell post). The next logical step appears to be stripping workers of their health insurance plans and charging tolls to use the company restroom. It looks like the market is painfully starting to bury risk-takers one at a time.