General Motors Co. will lay down about 4,250 salaried employees in the next few weeks in a workforce reduction plan that starts on Monday. The layoffs are part of an overall process that also runs out of five factories and saves $ 2.5 billion by 2019 and saves a total of $ 6 billion by 2020.
Overall, GM will cut about 8,0009 jobs including salaries and contract workers . The company also plans to trim its international leading workforce by 25 percent.
"We do not confirm timing," GM said The Detroit News . "Our employees are our priority and we will communicate with them first."
GM did not say which departments would be cut first, nor did it say in what order the cuts would take place. Plants that are expected to close the next few weeks are the Detroit-Hamtramck Assembly, Warren Transmission, Baltimore Operations, and the Lordstown Assembly Plant in Ohio.
The company offered buyouts in October of October to employees who would voluntarily separate the country and 2,250 of the took the separation package offered to 1
Automotive News first reported the ongoing "Black Monday" layoffs and said employees could be released as early as 7:30 am on February 4 and continue on a rolling basis throughout the day and the next few weeks until the labor reduction is complete.
The layoffs will begin despite GM announcing fourth-quarter revenues on Wednesday, where the Company is expected to show earnings are rising and exceeding $ 4 billion in cash flow. Although investors seem happy, those on Wall Street are not flinching.
"Many investors see GM as a" self-help story "that can cut costs faster than the pace of industry headwinds, leaving margins and cash flow supporting strong cash flow and return of capital. We don't subscribe to this view," Morgan Stanley's Adam Jonas said in Detroit Press . "We believe that cost savings will be returned to the consumer in price … which this industry has many priorities."
GM is already moving towards more fuel cell and electric vehicles in a press to start 20 emissions-free cars within the next four years.