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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@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.
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.