NEW YORK (CNNMoney.com) - General Motors is cutting hundreds of white-collar workers as part of its effort to slash its salaried work force by 7 percent by year-end, a company spokesman said Tuesday.

The cuts will come at different divisions at about 30 locations across the United States, GM spokesman Robert Herta said.

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Individuals who are laid off will be asked to leave immediately, but will get a compensation package, benefits and outplacement assistance, he said, though he declined to comment on details of the package.

But a person familiar with the situation told CNNMoney.com that white-collar workers getting termination notices would receive a month's worth of compensation for each year of employment, up to maximum of 15 months.

During the month of January, GM cut 500 contract jobs. The job cuts are part of a effort by the world's biggest automaker to reduce its U.S. salaried work force of about 36,000 in the United States by the end of the year. GM (up $0.27 to $23.20, Research) set the 7 percent target back in November.

"We are making some reductions in our salaried staffing levels," Herta told CNNMoney.com. "Today is part of those efforts."

Tuesday's staff reductions were expected to come through layoffs and attrition, as well as cuts in the number of contract employees.

The cuts, part of GM's sweeping restructuring aimed at stemming losses, come a week after the automaker reached a deal with the United Auto Workers union to offer early-retirement packages to more than 100,000 hourly workers as part of a plan to slash 30,000 jobs and close 12 plants through 2008.

GM lost $10.6 billion in 2005 as it struggled with high labor costs, and rising prices for oil, steel and other metals, while it kept losing market share to foreign rivals. It also took a hit from sluggish sales of sport-utility vehicles -- typically its largest profit generators.

The atmosphere at GM's Warren Technical Center in Michigan was tense Monday, as engineers remained uncertain about their future, Reuters reported.

A source told the news service that employees have been told to cancel vacations scheduled Tuesday. Herta denied earlier news reports that employees driving company cars were told to bring any company cars to work and that the company had prepared car services to take the laid-off employees home.

--from staff and wire reports

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