Information says that General Motors is planning to lay off at least 4,000 salaried workers in North America on Monday ahead of the company’s fourth-quarter earnings report
The reduction in the number of employees comes as the largest U.S. automaker undergoes a large scale restructuring. This reconstruction information was announced in November by CEO Mary Barra. General Motors is halting production at five plants in North America and is cutting 14,000 jobs as it realigns its workforce and is planning to produce more battery operated vehicles.
It has been said that the company wants to perform as many layoffs as possible. And the General Motors wants it to be done before its earnings report which is planned to be released on Wednesday.
On Friday, GM spokesman Pat Morrissey told “We are not confirming timing. Our employees are our priorities, and we will communicate with them first.”
The involuntary cuts aren’t as low as previously thought.
According to a document its been found that General Motors has offered buyouts to 17,700 employees in North America with at least 12 years of service in November. The company previously confirmed that it has been aiming for 8,000 voluntary buyouts. In this process, reportedly 2,250 workers have accepted severance agreements by November 19, and according to according to one of the people who was briefed on the layoffs, roughly 1,500 contract jobs have since been eliminated.
That leaves nearly 6,000 hourly employees and 4,250 salaried workers for layoffs. On November the company said that half of the hourly workers were in the United States and the other half was in Canada.
General Motors has offered jobs to all 2,800 hourly workers affected in the United States out of which 1000 has accepted. The remaining 3,000 hourly workers located in Canada are receiving help in finding jobs and training.
Most of the layoffs are planned at factories in the Canada and United States that make compact cars and sedans. All these vehicles have not been selling well in North America, as customers turn toward sport utility vehicles, trucks, and crossovers. These vehicles are said to be more profitable for automakers.
General Motors has been pumping cash into new mobility technologies, especially autonomous driving. While it has been reducing its sedan lineup and exiting its least lucrative businesses. The company said, the reorganization process of General Motors is expected to save the company about $6 billion by 2020 with half of those savings realized by the end of 2019.
Investors were told by executives that in the mid-January that the company’s full-year results for 2018 exceeded the company’s expectations, and has given a positive outlook for the year 2019 as well.
Sam Huszczo, owner of SGH Wealth Management outside of Detroit, said “Mary is a bold man. She doesn’t mind making a tough decision, which is probably nice to see compared to what GM has been historical. She’s not afraid of a tough decision.” He told he manages money for several clients who work at General Motors.
