GM is expected to cut its workforce by 4,000 employees in next two weeks.
Today, General Motors confirmed it’s cutting roughly 4,000 people from its salaried payroll. Automotive News reports that Pat Morrissey, a company spokesperson, said the move would take GM about two weeks to complete. The automaker will start the “vast majority” of the layoffs on a “staff-by-staff, location-by-location basis.” General Motors plans to cut 15 percent of its 54,000-strong salaried workforce — about 8,000 people — in the coming months.
According to a Reuters report, this round of job cuts will mainly affect its IT centers. Namely, technology centers in Texas, Georgia, Arizona and Michigan, including the company’s Warren, Michigan Tech Center, will be affected. Back in December, GM cut about 1,500 contract workers, and 2,300 salaried workers accepted buyouts.
Morrissey further elaborated on the decision by saying, “These actions are necessary to secure the future of the company, including preserving thousands of jobs in the U.S. and globally.” He also said the company would provide salaried workers with severance packages and help with job searching. It’s not just lower-end white-collar workers, either: GM aims to cut 25 percent of its executives as well.
On top of the salaried layoffs, General Motors has also scheduled the closer of five North American plants by year’s end. Those plants include Oshawa Assembly in Canada, as well as Detroit-Hamtramck Assembly in Michigan, Lordstown Assembly in Ohio, as well as operations plants in Michigan and Maryland. The company, and CEO Mary Barra specificially, have faced pressure from labor unions as well as politicians for the decision.
GM will report on its fourth-quarter earnings Wednesday. While we have information on sales figures through the end of 2018, the company won’t report its Q1 2019 earnings until April.