2024-11-15 16:01:00
General Motors remains down, this time laying off about 1,000 salaried and hourly employees as part of the new salaried employee classification system, as well as a normal course of business to achieve better operational efficiency.
GM’s latest job cuts span its global facilities across several departments, said a person familiar with the situation who asked not to be identified because they are not authorized to share this information with the public.
Most of the 1,000 jobs that were eliminated were salaried people assigned to GM’s Global Technical Center in Warren. But a small number were hourly employees, some of whom were represented by the union. The person said the UAW was notified.
GM employed about 163,000 people worldwide as of Dec. 31, according to its 2024 annual report, although that number has since declined.
GM spokesman Kevin Kelly confirmed the cuts and sent this statement:
«To win in this competitive market, we need to optimize speed and excellence. This includes operating efficiently, ensuring we have the right team structure and focusing on our top priorities as a company. As part of this ongoing effort, we have made a small number of staff reductions.
“We are grateful to those who helped establish a strong foundation that positions GM to lead the industry in the future.” A request for comment from the UAW was not immediately returned.
This is the second round of job cuts at the automaker in a matter of months. In August, GM eliminated nearly 1,500 jobs from its software division globally, and 634 of the eliminated positions came from its Technical Center.
One employee, who worked for several decades at GM, told the Detroit Free Press that he received an email that began: “We are facing the difficult decision of saying goodbye to some of our colleagues.”
Reference was made to business simplification, but no specific reason for dismissal or details of severance pay were offered. He asked not to be identified due to the sensitivity of the situation since he has not yet received a severance package, but said he had years of top-notch performance reviews, so he would be surprised to learn if he was let go because of his performance.
The person familiar with GM’s job cuts said those who were laid off will receive severance pay based on their years of service and any other legal requirements. in your region.
This person said that some of the layoffs “were a result of the new classification system, but the rest were due to the normal course of business, to make sure we had people in the right places and doing the right things. “GM worked with the team leaders.”
GM announced changes to its performance evaluation system for its salaried employees and its bonus plan. GM said it was moving from a three-point performance rating scale to a five-point one, which would take effect beginning with the year-end performance review cycle, which typically begins in November.
As part of the new plan, GM expects each organization’s manager to rate 5% of their team as significantly exceeding expectations, 10% as exceeding expectations, 70% as meeting expectations, 10% as that partially meets expectations and at 5% it does not meet expectations.
For the 5% that don’t meet expectations, GM wrote in an email at the time, “we hope that appropriate action will be taken, which may include exit from the company.”
The person familiar with these latest cuts said many of the eliminations were made “by looking at individual roles, individual skill sets and making sure we have the right number of people working on the right things.” “It was very strategic…looking at the velocity and making sure people are working on the right things.”
GM Chief Financial Officer Paul Jacobson has said that while GM has cut $2 billion from its costs over the past two years, it is still “fighting for efficiency” not just to get its electric vehicles to variable profitability. at the end of the year, but also to manage the core business.
Variable profitability means that the income GM obtains from the sale of the vehicle exceeds the direct cost of producing it. The calculation excludes corporate or “fixed” costs.
Currently, electric vehicles are not making money for the company; GM made most of its $4.1 billion in pretax profits last quarter from sales of gas-powered trucks and SUVs.
Although no more sweeping job cuts are expected this year, the person familiar with the situation said: “Team leaders have the discretion to make adjustments to their team based on their needs and what they are working on, but not “There is nothing specific.”
GM is expected to later file a Worker Adjustment and Retraining Notification (WARN) with the state with the specific number of jobs that have been eliminated.
General Motors had its bankruptcy and reorganization in 2009, leaving thousands of employees on the street, and leaving thousands of small merchants and suppliers unpaid.
«Tony, a friend of our director, was a General Motor supplier for almost 4 decades. In the 2009 bankruptcy GM had the debt with Tony removed (1.3 million dollars), and never paid him, not even with a car. Those 1.3 million were Tony’s retirement and his daughter’s college tuition. We learned that he almost committed suicide and was saved by his wife.
This from Tony is so you can see how these large corporations do what they want with small businesses. Our staff of writers never recommend purchasing any car made by General Motors, as most are unreliable.
Fuente: Detroit Free Press
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What are the long-term implications of the recent layoffs for General Motors’ workforce strategy?
**Interview with Kevin Kelly, General Motors Spokesman**
**Interviewer:** Thank you for joining us, Kevin. General Motors recently announced significant layoffs affecting about 1,000 employees. Can you explain the primary reason behind these layoffs?
**Kevin Kelly:** Thank you for having me. These layoffs are part of our ongoing efforts to optimize our operations for better efficiency and ensure we have the right team structure in place. We’re committed to remaining competitive in a rapidly evolving market and believe that these strategic adjustments will position us better for future success.
**Interviewer:** You mentioned that these cuts span various departments across global facilities. Can you specify how the layoffs were determined, particularly regarding the new classification system?
**Kevin Kelly:** Yes, the cuts were primarily focused on salaried employees at our Global Technical Center in Warren. The new classification system played a role in identifying roles that needed adjustment to align with our top priorities. Each managerial team was tasked with assessing their departments to ensure the right skill sets were matched to our current goals.
**Interviewer:** How are the affected employees being supported in light of these changes?
**Kevin Kelly:** Those who were laid off will receive severance pay based on their years of service, as well as any legal requirements that apply. We understand the difficulty of this situation for many employees, and we are committed to treating everyone with respect and providing necessary support during this transition.
**Interviewer:** This isn’t the first round of layoffs in recent months. In August, GM eliminated almost 1,500 jobs in the software division. How are these changes impacting the company’s overall workforce strategy?
**Kevin Kelly:** That’s correct. As we continue to adapt to the demands of the market, we’ve had to make tough decisions, including the recent job cuts. Our current goal is to streamline our operations while focusing on productivity and efficiency. We are actively working to ensure that GM’s workforce is aligned with our future objectives, especially as we transition towards electric vehicles.
**Interviewer:** Speaking of electric vehicles, GM’s CFO noted that the company is still fighting for efficiency in that area. How do these layoffs play into your strategy for electric vehicles moving forward?
**Kevin Kelly:** The layoffs are part of a broader strategy to manage costs effectively as we ramp up our electric vehicle initiatives. While we recognize that our electric vehicle segment is currently not profitable, the adjustments in our workforce are aimed at ensuring that when we bring our electric vehicle offerings to market, they will be financially sustainable in the long run.
**Interviewer:** Thank you for your insights, Kevin. It’s clear that GM is facing challenges as it navigates this transformative period in the automotive industry.
**Kevin Kelly:** Thank you for having me. We remain committed to leading the industry and appreciate the hard work of all our employees, past and present, in helping us achieve that goal.