General Motors expected to cut more jobs on Monday

Adjust Comment Print

General Motors is expected to lay off about 4,000 salaried workers under a reorganization announced late previous year, a person familiar with the matter said Friday. Originally reported by The Detroit News, the report comes nine weeks after GM made a decision to halt production at five North American plants and began negotiations with the United Automobile Workers union.

GM hasn't said exactly when the other 2,000 salaried and contract jobs will be cut, although it will happen sometime this month.

As part of its plan to cut $2.5 billion in costs, since November, GM has shed 2,300 white-collar employees with a dozen or more years of service and another 1,500 contractors. In a statement to AN, a spokesperson for the automaker said, "We are not confirming timing. We will communicate with them first".

More news: UK's May says she is "armed with fresh" Brexit mandate

Other plants slated to close include Michigan's Detroit-Hamtramck Assembly, Lordstown in OH, and transmission plants in the Detroit suburb of Warren, and in Baltimore, Md.

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.

The cutbacks that GM says are created to help the company free up $6 billion for development of electric and self-driving vehicles and other industry innovations have been criticized by President Trump, whose base has been working-class middle America.

More news: Iran unveils long-range cruise missile on revolution anniversary

Workers told the Free Press they were anxious about the job cuts.

Reports of the layoffs came just days after Consumers Energy, a public utility provider in MI, asked GM to suspend operations at some plants because of electricity supply issues due to the polar vortex. "You don't know if you should plan ahead for anything or not?"

More news: Not all Huawei's materials come from China, company says