Published: Tue, February 05, 2019
Business | By Eloise Houston

GM cutting 4,000 workers in latest round of layoffs

GM cutting 4,000 workers in latest round of layoffs

General Motors has confirmed to CBS News it started a major round of involuntary layoffs Monday that will cut about 4,000 white-collar jobs from its payrolls.

About 4,000 General Motors workers are about to lose their jobs.

GM cut about 1,500 contract workers in December, 2018, and said 2,300 salaried workers accepted buyouts, officials said.

The job cuts are part of what GM describes as efforts to improve its operating efficiency. This is part of a plan the company came up with to close five North American facilities and shrink its workforce by 15 percent. "We are taking action now while the overall economy and job market are strong, increasing the ability of impacted employees to continue to advance in their careers, should they choose to do so".

Most of the employees who will be part of this round of cuts are responsible for components for internal combustion engines and discontinued vehicle models.

GM is filing new required mass layoff notices with state agencies and disclosed the cuts to lawmakers. "Our focus now is on working with each individual employee on providing severance packages and transition support through job placement services". The decision also involves reducing the number of executives by 25 percent in a bid to streamline the decision-making process. Last week the company laid off three senior people in its Washington office.

The automaker announced cuts in November, including the closure of its Oshawa, Ont., plant, in a move expected to save the GM billions of dollars and help it prepare for an expected slowdown of the US automotive market during the next several years.

The president said he was "very tough" on Barra in a phone call after the company announced the closures, and referred to the federal auto bailout money the company received in 2008.

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