GM Begins To Axe 4,000 Jobs As Part Of Restructuring

Daniel Fowler
February 5, 2019

"This is about making sure that GM is lean and agile", Barra said.

The automaker expects the moves to help save up to $2.5 billion in costs this year and a total of $6 billion by 2020.

The company announced in November it was shrinking it is ending production at five North American plants and eliminating about 15% of the company's salaried workers.

According to reports from Automotive News, The Detroit News, and CNN, General Motors plans to begin laying off more than 4,000 salaried workers starting Monday morning. In his rebuke of GM, Trump focused on the closures in OH, a state he won in the 2016 election.

The plants include the scheduled closure of Oshawa Assembly in Canada by year end and the potential closure of Lordstown Assembly in Ohio, Detroit-Hamtramck Assembly and two powertrain operations in Pontiac and Maryland.

The exact timing of these layoffs remains unclear, however.

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GM Canada president Travis Hester has said the future of cars is electric, rather than internal combustion.

"You know, the United States saved General Motors, and for her to take that company out of OH is not good", Trump said in November. Friday's job report beat expectations, showing more than 300,000 jobs were created last month.

Canada spokeswoman Jennifer Wright says the salaried employee reductions in Canada have mostly been accomplished already through voluntary incentivized packages.

Prior to announcing the cuts, GM had hoped to reduce its workforce through voluntary buyouts offered to 17,700 employees, but the acceptance rate initially was low. Sources say that at least 8,000 salaried and contract positions will be cut in February. In addition, there were 1,500 contract employees who were not retained by the company.

General Motors will begin involuntary layoffs on Monday, hoping to complete the latest round of cutbacks before releasing its fourth-quarter earnings on Wednesday.

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