GM Cutting Jobs In Cost Reduction Effort63
As GM continues to drive towards its vision of an all-electric future, the 2023 calendar year is shaping up to be a critical turning point, with several high-profile EV models set to launch, including the Chevy Silverado EV and GMC Sierra EV, among others. Now, in an effort to reduce overall costs, GM is cutting jobs in the U.S. and abroad.
GM declined to specify how many jobs would be cut in this latest cost reduction effort, stating that the job cuts affect “a relatively small number of salaried employees and executives.” GM currently has 81,000 salaried employees worldwide. Employees affected by this latest cost reduction effort departed the company as of Tuesday, and will receive a severance package based on seniority.
In a recent report, Detroit Free Press indicates that several hundred jobs will be eliminated around the world, mostly in the U.S. The latest job cuts are tied to GM’s broader plan to reduce costs by $2 billion over the next two years. Further cost savings will be achieved via reduced corporate expenses, reduced overhead, and reduced product complexity.
In an internal GM communication sent to GM employees on Tuesday from chief people officer Arden Hoffman, GM outlined some of the changes going forward, as well as the reasoning behind them, stating:
“To deliver on our commitments and to beat the competition, we need to have the winning team, bar none. We need a culture shift that enables us to hold ourselves accountable for achieving the higher levels of operating that are now required. We’ve already made changes to make the experience around performance simpler and more meaningful, via more frequent conversations between leaders and employees.”
“This is a fundamental cultural shift to be more performance-driven and accountable,” the internal communication continues. “It’s clear our team is very strong, we have the right growth strategy, product portfolio, and vision. Working together, we are going to win.”
GM has also stated that it will limit hiring to its most strategically important roles, and will use attrition to manage head count.
Meanwhile, GM’s crosstown rival, Ford Motor Company, will eliminate 3,800 hourly and salaried jobs in Europe over the next three years, while Stellantis is set to eliminate 2,000 jobs from its Italian operations this year.
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So much for the theory that going electric will create jobs.
I was about to say that. I mean look at all those “good paying, high quality jobs” being “created”. It’s almost like some of us could have warned about this….. Oh, wait.
Build Back Better baby!!!!
To be honest I saw this coming. I expect more job losses as demand softens significantly.
No no no no noooo…
Spend spend spend…
Have they learned nothing from our “leaders”?!
Only spending more money fixed things!
ARE THEY NUTS?!
I think GM should invest a trillion dollars and make sure there is no accountability for how it is actually spent. It’s the only way!
All companies are scaling down as this economic down turn is not a short one.
GM is preparing correctly to deal with this and to continue to try to focus on product.
As for the EV deal some of you act like the automakers want EV. The truth is they have no option with the Zero emission laws that are coming for cars and light trucks. If you have been watching GM will keep ICE as long as they can at Chevy and GMC. Cadillac may actually sell more EV than gas based on Tesla sales.
Tough times are coming and it would not hurt if all of us started to get ready for hardcore times.n
CR.8 – What Zero emissions laws do you speak of? Did congress pass these laws or are they mandates by the EPA and the Democrats?
State adopting the CARB regulations that started in California.
They mandate all light car and trucks become Zero Emissions to be sold new. This means no ICE and No Ice Hybrid and Diesel after 2035
They will be able to sell the HD trucks and heavier with ICE hence the new GM V8. These laws are in force in over 1/3 of the American market and more states are signing on. I think Delaware just signed on,
Not the EPA but California laws are being adopted and it was found by the SCOTUS has ruled that the states can fully adopt and enforce these laws independent of the EPA. Many are large market democratic states.
GM is going to sell ICE as long as they can where they can but when near or more than half the market takes on the new rules they will be forced to move to EV no matter what they or we want.
Car companies are not going to make limited numbers of cars for a few states. They also will not change their plans every election as they can’t afford to do that. They hope to prefect the EV and survive. Likely they will with the amount of investment but there will be collateral damage along the way as more companies will merge and some will fail.
The EPA already is attacking racing and trying to make it impossible to modify a car for racing built as a street car. Read up on the RPM act that has yet to pass to stop this. It would decimate grass roots racing.
The reality is the ICE fans are losing the war and most have no idea what the laws and regulations are. They took your lunch and ate it before you knew it was gone in some cases.
Good luck CA, my free red state will never pass laws like that in the foreseeable future. Just say no! I’m not ready to roll over to government mandates. People needs to exercise their rights and voices as consumers. Say no to the woke mob.
Hopefully we will get a Republican in office in a few years and a lot of these asininecrules will be overriden.
I use to think the party mattered. It doesn’t, they’re all on the same team and it’s not ours.
And GM’s solution is a GMC Hummer?
Colin it is Zero Emissions so yes it is a solution. It also is expensive enough and special enough for people to spend the money on helping reduce the cost of the other models like the Nox EV that is coming.
GM is not out to save the planet just meet the laws and regulations they are being forced to meet. Acutally not just GM but all MFGS.
Just say no!
Carl I am afraid it is a bit too late. Pandora’s box has been opened.
15 years ago this war needed fought. This late in the game with billions spent there is no going back.
I expect a reversal in ‘24 once Biden is gone. Don’t hate. Gimme all them yummy downvotes. lol
Biden won’t be gone. Guarantee it.
James – Biden will be gone. The new President will be Chairman Gavin Newsom, unfortunately. You heard it here first. Guarantee it.
Biden wont be gone because this time he will get 82 million votes, to break his previous record.
GM’s internal sales indicators are measuring a weakening statistical downward trend over a time span, triggering white collar adjustment. When the sales weaken it’s time to make adjustments. Chrysler over the years being the weakest of the big three was famous for huge white collar layoffs. Also remember the demolition of the huge mile long Plymouth plant in Detroit? Stelantis is on their prayer rugs 3 times a day bowing to Mecca for their Jeep and Ram nameplates. GM is bowing for their full size SUV and pickup nameplates. Ford is praying to God for the F150 Lightening fix and a reorganization to make them profitable again, while Jim Farley chews Tums and drinks Pepto Bismal.
LOL, who but woke idiots would vote for him. Most outside of CA and Dim elites don’t even know who he is.
That’s who I’ve been predicting for some time (unfortunately)!
No matter who wins and what is reversed the automakers will not stop the path they are working. Billions already have been spent and they know in 4-8 years it could be easily reversed again. Also the factor of global sales as many other contrives already have plans to kill ICE.
Sorry the time to prevent this was to not vote the people in that were voted in 10 years ago,
This is bigger than just BIden, Trump or who ever anymore.
If gm needs help with their list, I have a few people in mind.
They could get rid of every district manager. They can’t do anything. Total waste of resources. They aren’t allowed to help anyone. They are only allowed to be sympathetic. The Zone managers are even worse. They should drop them from Helicopters. Totally clueless individuals.
This is a little bit of a bitter pill to swallow after GM bragged about not laying off workers when Ford did. I should’ve clued in that this was part of a wider package when SAIC-GM began denying “rumors” that they were laying people off over 45 years old.
They are not laying off employees, they are terminating them while using their performance ratings as justification. If you got an email on Monday that requested you to work from home on Tuesday and to attend a Team meeting online you were fired.
I’m looking at this as a consumer. With tens of thousands of layoffs or terminations spanning multiple sectors, GM releasing hundreds of workers in a bid to cut costs sounds like a harbinger of things to come. The global economy does not appear healthy right now.
GM is right sizing for the future as they expect hard times. This is not the same thing as Ford laying off 8,000 and selling German plants to pay for their EV program. Ford has more cuts to come.
Stellantis is closing the Belvedere plant in Il. and more will come. All MFGs will be making cuts and moves in the coming year.
I just saw where market watchers are expecting Chrysler division to die a the weak market leaves it in trouble,
The economy is not good and if we get another Covid like issue or the war expands it could be a major mess.
The scary part is Russia, China and Iran could easily tip this mess over.
Or North Korea.
I don’t see Korea doing anything unless told to by China.
Varney: I agree with your assessment. Job performance ratings are very subjective. Eye candy plays a big part. If you don’t cosmetically look good and smooze the right people and talk the right style and social development you eventually become toast. If you piss your supervisor off you become toast. If you can sustain walking on egg shells and playing the right politics in the corporate world you are in. Seen great qualified people terminated because they did not correctly play the political game. It’s all about not what you know, but who you know. You always need an Angel ahead of you in the large corporate world.
Hopefully they will fire the engineers responsible for Silverado being at the bottom of the Consumer Reports recommended list!
Since most of the offerings – sorry to say- both ICE and EV seem like they were designed by committee, they obviously need fewer committees.
Takes too long to offer suggestions here which few would welcome anyway. Better to just buy another vehicle..
That must be why gm’s market share keeps dropping.
Not so much committees but too many regulations.
They have to meet crash standards that regulate all sort of dimensions on a vehicle. They have to now account for do much crush space between the hood and engine now.
The aero is facing styling changes for EV range or gas mpg.
Then you have the run on CUV models where they are some of the most difficult to design. Two box styling has its limits.
Everyone’s market share is not doing well. This is why companies are more focused on return on investment vs volume. GM went broke once selling record number of cars but when you make no money in a contacting market it does little good.
The way cars are built and sold has radically changed and many even here have no clue what it takes anymore and think nothing has changed. We are far from the last major changes.
Just look at Ford where the F150 has kept them safe. Well today the volume of trucks is not enough. They went to Aluminum bodies and it cut into the profits and they are hurting due to the lack of money today. It is killing stock prices too. Fords quality is due to the cost savings or development and it is not going to be fix any time soon. They also lack the billions to catch up on the EV program as the Lightning and Mach E are not their future products. They were one off models to look like they had something going. Their real EV stuff is several years out if things go well. I expect they will need to partner with more than they already have with VW.
Ford is looking to sell plants in Germany to the Chinese as they have lost their sales in Europe. They also need the money,
I totally concur with your assessment of Ford. Jim Farley is sweating bullets. Ford has a priceless good will, trade name and dealer network, but is currently taking a hit. Lincoln is on life support. Fords big SUV’s are struggling. The execs are on their prayer rugs thanking Mecca for the Mustang and full size pickups. But this is not enough. I eventually see Ford partnering. The big glass house on American Road is in turmoil right now.
Yes I have been saying for over a year things are not good.
When the lighting Americas out and not long after they said it was not a part of Fords EV plan that was a sign of trouble. They are still years behind.
They have tried to hide the trouble behind claimed sell outs of the Bronco and Mavericks but they are limiting production so it is miss leading.
I just saw there will be tariffs on Russian Aluminum so all aluminum prices will rise again cutting more profit on the trucks.
Farley is gone but the trouble is I am not sure they know who to bring in. Bill Ford has no ability to step in. That failed before.
A friend who used to work at KODAK summed up the company’s problems by saying ” We have the BEST and the WORST employees”…. Unfortunately it seems most of the dummies were in a salaried/management roll.
– Item – Company couldn’t develop easy to manufacture GOOD copiers…
Therefore, their production manager would make plenty of the old designs which sold poorly – but the complication was the Customers wanted the GOOD copier, and if they couldn’t get it they’d go to some place else..
– Item – Management there constantly complaining about FUJI FILM producing a better product at a lower cost – ” They can’t do that to US – we’re KODAK !!”.
GM’s horrid production lines lately bring to mind both of those experiences at KODAK.
Example: They load the first version of the Caddy LYRIQ up with all the bells and whistles they can think of, then can’t get them to work right – when this buyer (me) would be much more satisfied with an immediately released vehicle that was missing:
– the Stockbroker’s Dashboard.
– the ungodly huge Level 2 charger which few people at home would ever use due to the fact it will require a new electric service, an additional $2,000 wall box permanently mounted in the garage (80 amperes requiring a 100 ampere branch circuit). Doubly ridiculous since they only supply a 32 amp charging cord for the $1,500 garage receptacle anyway…and, by way of comparison, Toyota and LEXUS (two brands that sell ‘one or two’ cars) only provide 32 amp chargers since it is all 98 % of people at home would ever use..
For those Techs and Travelling Salesman who get home at midnight and are on the road again at 6 am: those rarefied customers can purchase it for a $1,480 option on any of the 2024s where it is no longer STANDARD on anything.
– Autonomous driving system which does not work.
– ‘Gesture’ latches that other companies can get to work but not Cadillac..
– Totally Goofy ‘Choreographed Lighting’ that is a personal security issue since it is dangerous to pre-announce your arrival to your vehicle in a bad neighborhood.
– Other than precious few colors and some early silvers – all LYRIQS manufactured for the time being will be BLACK. Production line incompetence is one thing – but they can’t run a Paint Shop either? !!!
As far as all the freebies given with the Bolts and Lyriqs, it is interesting to note that Neither Tesla, nor Hundai/Kia – provide any home charging cords AT ALL. Both of course have cords available for sale, but they don’t really care at this point if you provide your own. GM by providing all this STUFF gratis on both the LOWEST and HIGHEST cost vehicles is way behind the times.
I historically have liked gm products – but I have for the past few decades wondered when Managerial Incompetence will SEVERELY impact the final design of a vehicle…. My 2023 LUXURY TRIM LYRIQ – which the Factory has COMMITTED to manufacture AS A 2023 vehicle the week of April 17th (irrespective of all the revelations here that 2023 production will stop a month earlier), seems to be overall ok, and some things seem to be a real improvement – like a heat pump heater – but the time will probably come that gm may have an eventuality like KODAK.
Unless of course they suddenly impose some self-discipline on their multitudinous Big Experts.
How in the world did GM bring so many Bel Air’s to market in the 50’s and 60’s. They can’t even get a product to market on time every 7 years with all of the so called great computers. Today’s GM could have never pulled off the 50’s and 60’s.
Richard the cars today are more complex than the Saturn V that went to the moon. To build design and engineer these models today it not only takes time but a ton of money.
A few changes are Billions of dollars today in the past it could be maybe a million if that much.
To engineer for crash, MPG and all the others electronics and such is a major undertaking.
SELL THE REN CEN, or give it away!
GM leases the Ren Center. It’s an outdated Albatross. Eventually it will be converted to residential apartments. High rise urban office space is a thing of the past. High density, high rise residential is in.
GM wants out and will leave in time. But they don’t want to have the bad pr for leaving Detroit.
They will head to one of the facilities they are building tonthe north at some point.
Simple equation: EV’s will not be sold in the quantities of ICE’s, so less people needed.
EV’s, based on 1 platform means that the engineering of that section of the vehicle will stay untouched for many many years (I mean, perhaps very little changes) and therefore less people needed.
So, in total less+less people needed. No wonder the news came.
Maybe this time the ones that wanted to work from home, they will stay home after all, but jobless.
They will sell as people will not be walking. Given no choice they will have to buy them at some point.
I know this is a emotional topic for many but not being honest about it will still not change things.
This monster is coming and we all are going to have to find a way to deal with it..
Or fight it!
These big corporations see the writing on the wall.
For ~2 years, the economy has been in the toilet, inflation has been through the roof and it is only getting worse. By terminating 1,000’s of people, they are freeing up capital in order to give themselves a chance to survive what is coming.
You get what you vote for…
This isn’t a pandemic induced economic downturn, its all been governmental induced by stupid policies, regulatory actions, and financial influx.
Precisely; however, if you turn on the tv, the MSM will tell you otherwise.
My advice: People need to turn off that imbecilic plastic box sitting in their living room and open their minds.
and so it goes…
Hopefully it will be the personnel that makes decisions to spend money on projects that half of the tooling is scrapped because if was obsolete from the beginning. No idea of what they are doing, this saves millions every year
Or change the channel to a trustworthy source.
Wonder how many of these jobs are the work from home variety?
Used to be if one worked for a domestic manufacturer, as long as you didn’t lie, steal, fight, sexually harass, and just showed up to work everyday you were set for life and could provide for your family, give your children good educational opportunities for their success, and contribute to your community in a positive manner. Actually accomplishing something at work was optional, but by and large the vast majority took pride in their work and realized the importance of performance and producing a better product. While there are always going to be occasional economic conditions which must be delt with, there is a situation like 2019 where GM released thousands of salaried employees because, the technology needs of the company have changed, only to be followed by rounds of massive hiring. Now this firing of employees because, the technology and needs of the automotive industry are changing and must be addressed by right sizing the company. When a company has just recorded record profits like GM then why the heck are they not investing more in their people like they used to, to carry them through the lean times and be ready to emerge quicker and stronger rather than treating them like commodities with no loyalty under a constant threat of being fired which ends up creating sheety products.
What I don’t get is the State of MI politicians are about to invest $600+ million into infrastructure for a battery plant (for Ford) saying how many jobs it will support. For who? Certainly not american auto workers because there is no loyalty there. They also say it’s needed because the auto industry is changing to an EV future and the investment is needed to maintain Michigan as the automotive capital. What capital? Its all a bunch of political mumbo-jumbo. There is no comprehensive plan to provide enough energy to support an electrified future. There is no comprehensive plan to sunset fossil fuels as an energy source. The federal government has no plans to make the US energy independent. If politicians want to help us out now, then they need to get off their butts, forget about all their DEI and social save the world ideas, and do something, like a massive regulatory and economic boost to the home grown bio fuels industry which is usable right now, reduces greenhouse gas emissions and supports a viable us economy. I’d burn e85 and b20 all day if it were cheaper on a BTU provided basis and were available (which it is not to me right now). I can heat my house with wood or soy based bio fuel, but I can’t heat it with a heat pump when there is no electricity supply and I don’t have three acres of solar panels. At this rate, all us minions are screwed.
This is bigger than just the auto industry as these cuts now happen everywhere. Competition and economic changes have really changes the whole deal.
I may be working for one of the few companies today that have never done a lay off. It is rare to find an employee that works for one company till retirement.
Some of this is poor leadership. Some unions, much global economics and global competition.
It is not just one thing or industry.
Barra, Ruess, many other executives are all GM lifers. They may have loyalty to the company, but not to the rank and file. Most corporations don’t last long enough to retire from now anyway, and of the ones that did who would have thought that Dupont, Dow, and every paper company in the US would cease to exist under their founding entity. GM corp and GM LLC is a special case. You missed the primary instigator in corporate downfalls and policy changes, and that is government, federal/state/local and their member political agendas, partisan haggling, and functional ineptitude. Global warming may be real and an excuse corporations use to change direction, but greenhouse gases from fossil fuels are not the root cause, the root cause is humanity. Humanity is killing the planet faster than my Silverados are.
Sorry but today all unions are awarded contracts and the employment is for that contract. No one is promised life time employment.
Everyone is offered pay per hour worked. In the case of the white collar people they get straight pay and no over time.
As for global warming it bunk. These financial people are using it to try to destroy the economies of the strong countries and to get the money and jobs to the poor countries.
They claim it to be economic equality but it is more for control. The ultimate goal is global government.
With everyone weak they can take control.
The earth is much more rehabilitative than they claim. Humans are the weak link and will be gone and the earth would carry on.
Really enjoy your posts. You are a commenter on this site that has a brain and excellent command of the English language. A+
Reading your posts, I bet you work for Mr. Gasket in Cleveland. My Mom and Dad worked for Clevite when it was Cleveland Graphite Bronze. Cleveland in it’s heyday was an auto parts capitol for the one time great American Auto Industry, when America was king of the hill. Sad that we are killing ourselves from within.
Thanks. Right industry wrong company.
Cleveland Aharon and Canyon were all great suppliers. Now so little is made here.
I just was looking at a ZR1 aluminum block thinking how cool all the Aluminum GM engine parts were made in Canton Ohio including the famed Can Am blocks at Winters foundry.
The First Corvette bodies were made in Ashtabula and the molds just outside Akron.
Very sad what we have lost.
What is really sad is many on the web are upset but are so very off on what really is going on. This is not as simple as many think.
The it’s is a fad or they will change the laws at the next election just no longer work. We have gone too far and those bringing change have made reversal nearly impossible.
So many are having the rug pull out from under them and they have no clue.
The lack of passage of the RPM act is scary as to the damage it will do and so few know or care.
The economic and financial meters within the Federal Reserve have their needles pointing into cautionary red zones and have been in the cautionary red zones for the past several months. The Reserve is trying to cool down inflation which has been out of control. This will simultaneously cool down the insane increases in the housing industry and also slow auto sales. It’s all a domino balancing effect. We are facing huge uncharted waters in this energy transition from basic fossil fuels to sun radiation and wind capture. In an accelerated pace.
As Albert Einstein stated, ” Energy is neither created nor destroyed “. A basic law of physics. Meanwhile, China and India are hell bent on fossil fuels.
America and it’s direction is in confusion right now. Just like the state of California, which is in a state of Exodus. Everybody is spooked about the European war going into a mega blow up. Brandon and his team operate in a wishy washy manner adding to the unknowns and uneasiness.
The planners in Washington DC are watching for China to make their move in this growing Perfect Storm. Asia wants to come out of this King of the Hill. India wants to be part of this show.
HOPE PINK SLIPS BEGIN WITH MARY