General Motors will start posting 4,200 salaried workers Monday as part of its scramble to save billions of dollars in annual costs, The Detroit News reported.
In November, GM announced that it had cut a total of 15 percent of its profitable employees, including 25 percent of the company's executives. It also plans to close four factories in the US and one in Canada with more than 6,000 hours of workers.
GM has complained that President Donald Trump's trade war has cost the company $ 1[ads1] billion in additional tariffs on imported aluminum and steel. The company hopes that job cuts will save $ 6 billion a year by the end of 2020.
A GM statement to CNN said the current downturn is part of the reductions announced last year. As for the rest, "we do not confirm the specific timing of when these reductions will occur," the statement said.
The GM cuts – along with the Ford and Fiat Chrysler reductions – come in the wake of a massive corporate tax cut from 35 percent to 21 percent implemented in 2017 by the Trump administration. The president set his tax plan as an incentive for companies to expand their business and thus share their tax-saving wind hazards with workers. However, a survey released last month showed that the large cuts had no significant impact on the companies' capital investment in their business – or employment.
When GM announced cuts last year, Trump said he was "disappointed". Later, Sherrod Brown (D-Ohio) blasted the movement at the time of "corporate greed at its worst."
Trump is expected to leverage the administration's boost to US production in its EU address next week.
Friday report that 304,000 jobs were created in the United States last month were better than expected. Unemployment rose to 4 per cent from 3.9 per cent last month. The Trump administration's trade wars and the health of the world economy continue to trigger fears for the country's economic future.