GM expected to start cutting 4,000 jobs

Roman Schwartz
February 5, 2019

Starting November 2018, GM offered buyouts to 17,700 employees with at least 12 years of service in the USA and Canada. One month earlier, GM offered buyout packages to 18,000 workers and said it would seek to cut its global workforce by 25 percent.

The job reduction was part of a broader plan approved by GM's Chief Executive Officer Mary Barra that also will see three North American assembly plants and two component factories close by the end of 2019.

'These actions are necessary to secure the future of the company, including preserving thousands of jobs in the U.S. and globally, ' GM spokesperson Pat Morrissey said, adding that the bulk of the cuts should be completed within the next two weeks.

Pat Morrissey, a GM spokesman, said a "vast majority" of the layoffs - expected to be approximately 4,000 people - will be implemented in the next two weeks on a staff-by-staff, location-by-location basis.

Industry trade journal Automotive News learned the lay-offs are part of an on-going restructuring effort envisioned as a way to make GM a leaner, more efficient, and more profitable company. Since then, the company has cut about 1,500 contract jobs and more than 2,250 workers have taken a voluntary buyout, the report said.

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In November, GM announced it would halt production at plants in Detroit, Ohio, Michigan, Maryland, and Ontario, while cutting as many as 14,000 jobs as part of its most ambitious restructuring plan in a decade. GM said in November it would end US and Canadian production of the Chevrolet Cruze, Volt, Impala, the Buick LaCrosse and the Cadillac XTS and CT6 sedans.

He said the company would face punishment for the closures, which included a plant in Lordstown, Ohio, that Trump personally promised to revive during the 2016 campaign.

"All of them are impacted", Rothenberg said.

GM said some 2,250 workers accepted severance agreements by November 19.

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