General Motors is laying off 231 workers at its Information Technology Innovation Center in Atlanta, according to the Atlanta Business Chronicle (subscription required). The cuts are apart of GM’s larger restructuring that called for laying off 15 percent of its workforce and 25 percent of its executive staff.
General Motors opened its new IT Innovation Center in 2013, planning to hire approximately 1,000 workers. Then-Georgia Gov. Nathan Deal said, “The information age will be with us for a long time.”
The cuts come as General Motors continues to close factories and lay off workers. This week, production ended at GM’s Lordstown factory. GM also announced its White Marsh, Maryland transmission factory, which builds gearboxes for the Chevrolet Silverado and GMC Sierra heavy-duty pickup trucks, will idle May 4. GM has also announced its closing its West Chester, Ohio processing center May 31.
Layoffs throughout General Motors started last month after a round of voluntary buyouts failed to attract enough employees. Reports indicated General Motors wanted to lay off 7,000-8,000 people through the buyout program. However, only about 2,250 opted to participate. Employees were offered six months worth of salary and health benefits starting in January if they accepted.
The latest round of cuts comes as GM readies to negotiate it with the United Auto Workers union on the fate of three U.S. factories. The UAW is fighting GM on idling the three plants, filing a lawsuit against the automaker, alleging a violation of the contract between the two. A fourth U.S. factory, Detroit-Hamtramck, was slated to close this year, but GM extended production there through January 2020 to build the Cadillac CT6 and Chevrolet Impala.
The layoffs and closures are having an effect on suppliers and other local businesses. When GM began making staff cuts at its Warren Tech Center, local businesses immediately felt the impact. A study from the University of Michigan’s Research Seminar in Quantitative Economics, found that GM’s layoffs and closures could cost Michigan 16,000 jobs over the next two years.