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.

  • El scotto Never mind that that F-1 is a bigger circus than EBFlex and Tassos shopping together for their new BDSM outfits and personal lubricants. Also, the F1 rumor mill churns more than EBFlex's mind choosing a new Sharpie to make his next "Free Candy" sign for his white Ram work van. GM will spend a year or two learning how things work in F1. By the third or fourth year GM will have a competitive "F-1 LS" engine. After they win a race or two Ferrari will protest to highest F-1 authorities. Something not mentioned: Will GM get tens of millions of dollars from F-1? Ferrari gets 30 million a year as a participation trophy.
  • El scotto None of them. The auto industry is full of people with huge egos. It's a case of huge ego = never ever being wrong.GM: The true believers end up at Bowling Green. A fast rising GM executive that just didn't quite make it: Truck & Bus, Fort Wayne isn't really that far from Detroit!Ford: Billy Ford once again, and it seems perpetually, convincing his doubtful relatives not to sell their preferred stock. I give VW a 50/50 shot at buying out Ford; a family buying out another family.Tesla: Straight from Elon: "My Tesla has hidden compartments for handcuffs, ask my latest girlfriend where they're located"Stellantis: Get used to flying to Schiphol. You'll have luggage, lots of luggage.None of the Big 3 will ever admit they were wrong. Tesla will just keep gaining market share.
  • SCE to AUX A question nobody asks is how Tesla sells so many EVs without charge-at-home incentives.Here are some options for you:[list][*]Tesla drivers don't charge at home; they just squat at Superchargers.[/*][*]Tesla drivers are rich, so they just pay for a $2000 charger installation with the loose change in their pocket.[/*][*]Tesla drivers don't actually drive their cars much; they plug into 110V and only manage about 32 miles/day.[/*][/list]
  • SCE to AUX "Despite the EV segment having enjoyed steady growth over the past several years, sales volumes have remained flatter through 2023."Not so. How can EV sales be increasing and flatter at the same time? and H/K/G are all up for EV sales, as are several other brands.
  • ToolGuy Here is an interesting graphic, if you're into that sort of thing.