General Motors plans to set up at least 4,000 salaried workers in North America, starting Monday before the company's fourth quarter revenue report, according to two people informed of the case.
The involuntary cuts are not as steep as previously thought.
GM offered 1
It leaves about 4,250 salaried employees and 6,000 temporary employees targeted for layoffs. The company said in November that half of the hourly staff were in Canada with the other half in the US
Many of the cuts are scheduled at US and Canada factories that make sedans and compact cars – vehicles that have not sold well in North America. as customers turn to trucks, sports cars and crossovers. These vehicles tend to be more profitable for car manufacturers.
Since it has been trimming back on its range and expanding its least lucrative businesses, GM has pumped money into new mobility technologies, especially autonomous drivers.
GM's reorganization is expected to save the company around $ 6 billion by 2020, with half of the savings realized by the end of 2019, the company has said.
Leaders told investors in mid-January that the company's full-year result for 2018 exceeded company expectations, and also gave a positive outlook for 2019.
"Mary is bold man. She doesn't mind taking a tough decision, which is probably nice to see compared to what GM has been historic, she is not afraid of a tough decision, "said Sam Huszczo, owner of SGH Wealth Management outside Detroit. He said he was managing money for several customers working at GM.
This story is evolving. Check back for updates.
CNBC contributor Paul Eisenstein assisted with this article.