GM begins 'vast majority' of white-collar cuts

Andrew Cummings
February 5, 2019

Detroit giant GM is expected to begin laying off 4,250 salaried workers on Monday as part of a 15 percent reduction in the company's white collar jobs, CNN and The Detroit News are reporting.

Barra and other executives have noted that not all the workers affected by the plant closings will lose their jobs.

But on Friday a GM spokesman said the automaker had trimmed about 1,500 contract jobs, meaning about 4,000 more staff jobs will be cut, according to the Detroit Free Press.

That leaves the remainder of the 8,000 planned job cuts to be accomplished with the involuntary layoffs.

GM tech centers in Texas, Georgia, Arizona and MI are expected to be hit hardest this time around, as the overall plan will ultimately cut a total of about 15,000 jobs and end production at five North American plants. "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".

GM said earlier in 2018 that it would discontinue certain vehicle models over the next several years, but the gravity and timing of these changes was not as predictable from the outside perspective.

GM is filing new required mass layoff notices with state agencies and disclosed the cuts to lawmakers. About 2,250 salaried workers volunteered to take a buyout, leaving as many as 5,750 workers still to be cut.

GM is also cutting its executive ranks by 25 per cent, and last week laid off three senior people in its Washington office. GM started the process in November with voluntary layoffs and announced plant closures. The savings are necessary as GM faces the steep costs of investing in new technologies, namely electric and self-driving cars, Chairman and CEO Mary Barra said in a statement, NBC News reported Monday.

Last month, Comprehensive Logistics said it would cease operations at its facility in Lordstown that provides logistics and warehousing, impacting about 180 jobs.

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