General Motors to lay off about 4,000 salaried workers

General Motors is expected to lay off about 4,000 salaried workers under a reorganization announced late last year, a person familiar with the matter said on Friday.

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, reports BSS.

  Learn about the COVID-19 pandemic from News Hour  

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 criticized 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.

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.
“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

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

Follow News Hour
News Hour Correspondent

This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
No Comments
Scroll Up
%d bloggers like this: