GM Begins Axing 4,000 Salaried Workers

Steph Willems
by Steph Willems
gm begins axing 4 000 salaried workers

Last Friday’s whisperings of a “Black Monday” panned out, with General Motors announcing the elimination of roughly 4,000 salaried workers — part of a preexisting pledge to reduce its North American workforce by 15 percent.

Pink slips are in the process of being handed out, an unwanted delivery that should take two weeks to complete. In total, GM hopes to cull 8,000 salaried workers and reduce its executive ranks by 25 percent.

Part of the plan to slim down its 54,000-strong North American workforce by 15,000 employees includes the shuttering of five plants, three of which crank out doomed GM car models.

According to sources who spoke to Reuters, Monday’s targets include hundreds of positions at its information technology centers in Texas, Georgia, Arizona, and Michigan. As well, more than 1,000 jobs are said to be lost at GM’s Warren, Michigan Tech Center. The job cuts were revealed via mass layoff notices sent to state agencies.

In correspondence with Reuters, GM spokesman Pat Morrissey said, “These actions are necessary to secure the future of the company, including preserving thousands of jobs in the U.S. and globally. We are taking action now while the overall economy and job market are strong, increasing the ability of impacted employees to continue to advance in their careers, should they choose to do so.”

This round of cuts comes two months after the automaker eliminated 1,500 contract workers. Some 2,300 salaried workers have already accepted a voluntary buyout, Morrissey said.

As for Canadian layoffs, those are largely complete, CBC reports.

While the Canadian Oshawa Assembly plant is doomed, the fate of Ohio’s Lordstown Assembly and Michigan’s Detroit-Hamtramck facility will be the subject of much debate and advocacy as UAW bargaining talks get started this summer. From these plants pour forth the Chevrolet Cruze, Volt, and Impala, Buick LaCrosse, Cadillac XTS and CT6. Production should cease by the end of the year.

GM claims it plans to keep the CT6 on dealer lots, either by shipping the sedan from China or, ideally, moving production to an alternate U.S. plant.

[Image: General Motors]

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  • Jeff S Jeff S on Feb 05, 2019

    @highdesertcat--You are probably right the Government will not let GM fail. GM has a few vehicles worth saving such as the Tahoe, Suburban, and Corvette but the plant equipment would be a good buy for pennies on the dollar. I don't think Barra and the board are through with the cutting and downsizing. Buick should be a Chinese specific brand. GM needs to get rid of the designers that designed the new Silverado such an ugly truck and much too important a product for GM to mess up. GM should also get rid of Daewoo they don't need it anymore and it is a drain on GM.

    • Highdesertcat Highdesertcat on Feb 05, 2019

      " I don’t think Barra and the board are through with the cutting and downsizing. " I agree. The reality is here. These chickens have come home to roost. But at least a 1000 or so GM workers have been offered jobs in other plants for now.

  • TheEndlessEnigma TheEndlessEnigma on Feb 06, 2019

    Looks like a disproportionate number of cuts are focused on IT and R&D. That makes sense. As long as the CEO looks good that's all that matters.

  • Bobbysirhan I'm surprised by the particular Porsches to make the list, and also by the Cadillac. Most of all, I'm shocked that the 2-door Mini Cooper is on here. I didn't even know they still made them, let alone that anyone was still buying them.
  • Ajla I assume the CT5 is on the list due to the Blackwing variant.It would be interesting to take the incentives that existed in October 2019 and include that in an analysis like this as well. The thing about the used market is that while you'll pay less in total dollars, in some cases the percentage increase from 2019 is even worse than with new cars. Buying a Saturn Relay for $6k isn't exactly a winning move.
  • VoGhost Reminder: dealers exist to line the pockets of millionaires who contribute to local politicians.
  • Cprescott The pandemic changed the sales game. No longer do dealerships need inventory. After two years people are accustomed to having to order what they want and then extorted on the price by the dealer for that privilege. Now used cars with 75k are selling for $5k more than I paid for my 21k, 2016 model back in January 2019. I pray my car won't get totaled and I have but 13 payments left to make on it. I may never buy another car again.
  • Grein002 I hope you meant "take the Ranger out behind the *barn*" rather than "bar". I think something completely different happens "behind the bar".