HomeInsideGeneral Motors to cut jobs of 4,000 salaried employees

General Motors to cut jobs of 4,000 salaried employees

Reader's Pick

General Motors is expected to lay off about 4,000 salaried workers under a reorganisation announced late last year, a person familiar with the matter has said. The layoffs are part of a cost-cutting plan GM announced in November, which will slash 15 percent of its salaried and contract staff and shutter seven plants, including five in North America.

Media reports estimated the total job cuts of salaried staff and union workers at about 14,000, including about 6,000 union workers. GM said the actions – which were roundly criticised by US and Canadian politicians – would save $6 billion in costs.

GM has not estimated how many workers would be involuntarily terminated as a result of the cuts.

A GM spokesman declined to comment on the timing of the layoffs after CNBC and the Detroit News reported they would begin Monday to get ahead of the company’s earnings report.

- Advertisement -

The spokesman said “we’ll communicate with our employees first.” About 2,300 salaried workers opted for voluntary buyouts, while another 1,500 contract staff were let go, said the source, who described the estimate of 4,000 laid off salaried staff as reasonable.

GM officials have said they expect to add 2,700 jobs at various US factories across and that US union staff would be offered transfers.

The automaker also is working with Canadian universities and government officials to assist some 3,000 workers affected by the closure of an Ontario plant, a GM spokesman said.

Brian Rothenberg, a spokesman for the United Auto Workers, said not all workers eligible for transfers will be able to relocate for family reasons.

- Advertisement -

“All of them are impacted,” Rothenberg said. “We don’t know how many will be laid off vs relocated.” GM has defended the cuts as essential to position the company for the long-term, and savings from the reorganization boosted its 2019 profit outlook.

But the moves were roundly condemned by politicians, including US President Donald Trump and Canadian Prime Minister Justin Trudeau.

close

Stay on top of Budget 2023 with our newsletter

We don’t spam! Read our privacy policy for more info.

close

Stay on top of Budget 2023 with our newsletter

We don’t spam! Read our privacy policy for more info.

- Advertisement -

Read latest Business News and Startup news on TechGraph. Watch live and latest news on TechGraph TV. Follow us on Facebook or follow us on Twitter and Instagram. Listen audio news from TechGraph Briefings on Spotify, Google Podcast, Amazon Music & on Apple Podcast.
 

Krishna Mali
Krishna Mali
Founder & Editor of TechGraph.

Latest News

Promoted Links

Related Stories

Japan approves 26 trillion yen as economic stimulus package to combat overseas risks

Japan's cabinet approved an economic stimulus package worth 26 trillion yen ($2...

1Win App: Review India Apk for Android and iOS

The company 1Win has been successfully operating in the markets of many countri...

Sino-US trade war offers Europe’s chance to bank more Chinese reserves: Analysis

Should European countries want the euro to replace the dollar as the world's do...

Employees union seeks FIR against Jet Airways boss Naresh Goyal, Vinay Dube and on SBI Chairman

The employee union of Jet Airways, which is facing its worst crisis, Friday sou...

Samsung Electronics asks its shareholders to use electronic voting for upcoming AGM

Technology giant Samsung Electronics has adopted electronic voting for the firs...

Rahul Gandhi hits on RCEP says, ‘Make in India’ has become ‘Buy from China’

Asserting that "Make in India" has become "Buy from China," Congress leader Rah...

NASA astronauts to carry first ever all-female spacewalk on 29 March

Two NASA astronauts are scheduled to carry out the first ever all-female spacew...
00:05:54

Union Budget 2023: Five Major Changes to the Personal Income Tax Regime

In a major announcement on income tax changes, the government has revealed five...
00:02:04

Union Budget 2023: Infrastructure Investment with Steep Capital Outlay

The Finance Minister, Nirmala Sitharaman, has announced the Union Budget 2023 w...
00:09:17

What Jammu & Kashmir, Ladakh, Northeast & Agritech got from Budget 2023?

Addressing the parliament on the ongoing union budget session, Finance Minister...