A new report from The Detroit News, relying on a source familiar with the plans, says General Motors will begin laying off roughly 4,250 salaried employees starting Monday. The news doesn’t come as a surprise, given that the layoffs are just one part of a massive restructuring the automaker announced late last year, which included laying off both salaried and hourly workers, discontinuing several models, and closing five North American factories.
General Motors did not confirm whether the rumors are true.
“We are not confirming timing,” GM said in a statement to the Detroit publication. “Our employees are our priority, and we will communicate with them first.”
The road to layoffs began in October, when General Motors announced it would offer voluntary buyouts to 18,000 salaried workers in North America who have 12 or more years experience and who started their employment at the automaker December 31, 2006 or earlier. However, by late November, not enough people were taking the voluntary buyouts. The company sought to cut 7,000 to 8,000 employees, but roughly 2,250 opted to take the buyout, which offered six months worth of salary and health benefits starting in January.
Also at the end of November, General Motors announced a new corporate restructuring initiative, which included cutting 25 percent of its executive staff and laying off 15 percent of its salaried workforce.
The layoffs are likely just the beginning for a slew of tough decisions and fierce battles the automaker will need to face in the coming months. Unifor, the Canadian workers union, is fighting GM on plans to close the Oshawa factory. It has even called for a boycott of Mexican-built GM vehicles. The UAW os also participating in the boycott. The Canadian union has held protests, walked off the assembly line, and bought ads on TV and in print urging the automaker to keep the factory open.
Stay tuned to GM Authority as we follow this developing story, as well as for more GM news.
Comments
Sad
More bad news from Miss Barra’s “leadership” at GM.
She has been nothing but a failure…Cutting staff because sales and profits dropping under her reign. Reminds me of Angela Merkel destroying Germany and soon running for the hills. We can only hope with Barra…
And Carley Fiorina at HP, and cannot forget our old friend Roger Smith.
For the Barra apologists out there, ask yourself why GM is the only one closing plants when some companies- like Toyota and FCA are actually adding plants in the US. Sorry, the BS lies that Machete Mary is giving everyone does not mask the fact that GM totally misread the market when their competition saw the trends four years ago.