General Motors Co. has laid off 500 executive-level and salaried employees a month after its CEO said the company was "not planning" job cuts. GM said it incurred special charges in the fourth quarter of $511 million related to a buyout program for its Buick dealers and $657 million related to shuttering its limited operation in Russia. Contact Jamie L. LaReau: jlareau@freepress.com. Article printed from InvestorPlace Media, https://investorplace.com/2023/03/general-motors-layoffs-2023-what-to-know-about-the-latest-gm-job-cuts/. The decision by GM comes in response to similar actions taken by other significant automakers, such as Ford Motor and Stellantis, to cut expenses and streamline their operations. Become a subscriber. All of these plants will be closing down in 2019. The cost-cutting drive comes after GM's announcement in January that it aims to save $2 billion in costs over the next two years. Wedbush Analyst Daniel Ives recently stated cost-cutting is part of this process, indicating that investors shouldnt be worried. 2023 www.freep.com. This round of job cuts shouldn't worry GM investors, Source: Jonathan Weiss / Shutterstock.com, One of Motor Citys most iconic names is joining the growing list of companies laying off workers. The company isnt providing the exact number of employees affected in the United States and sites overseas: as of December 2022, GM employed about 86,000 hourly employees and 81,000 salaried employees worldwide.. You can now write for wionews.com and be a part of the community. 2023 CBS Broadcasting Inc. All Rights Reserved. Changes in these assumptions may have a material impact on the backtested returns presented. In July, GM reported its second quarter income was about 39% lower than the year-ago periodas ongoing production disruptions persisted due to supply chain issues andan industry-wideglobal semiconductor chip shortage. GM announces sweeping layoffs; spares Flint. Retrieved from World Socialist Website: https://www.wsws.org/en/articles/2019/02/02/auto-f02.html, Lau, J. General Motors' announcement of cutting executive-level and broader jobs is part of the automaker's efforts to reduce its structural costs and enhance efficiency. January 26, 2022 / 3:35 PM / CW50 Detroit DETROIT (AP) There are more than 8,000 new technical job openings at General Motors, and the automaker We want to hear from you. During the companys Q4 2022 earnings call in January, CEO Mary Barra stated, I do want to be clear that were not planning layoffs. Barra said the company is targeting $2 billion in cost savings in its automotive business over the next two years. Please note all regulatory considerations regarding the presentation of fees must be taken into account. That vehicle is expected to be followed by an electric Chevrolet Silverado work truck by midyear and electric versions of the Chevrolet Blazer and Equinox during the second half of 2023. Data is a real-time snapshot *Data is delayed at least 15 minutes. The cuts affect about 500 positions, according to a person familiar with the plans, which were announced internally Tuesday. Save my name, email, and website in this browser for the next time I comment. Ford gearing up for more layoffs, plant closings. General Motors' announcement of cutting executive-level and broader jobs is part of the automaker's efforts to reduce its structural costs and enhance efficiency. All rights reserved. The Company took this strategic decision in order to cope with the changing environment, deliver all those commitments, and improve customer service by meeting the needs of the players. Here is the breakdown: DETROIT Another 1,600 workers at three General Motors gm factories will be laid off indefinitely over the next few months as the company tries to control its inventory as U.S. sales slump. The logo of General Motors is seen in a file photo. General Motors has temporarily laid off 5,000 workers at its Flint Assembly plant in Michigan due to a planned production stoppage. Two Wall Street Legends will reveal their #1 recommendations and full "roadmap" for navigating the coming AI revolution. The given video in the CLA1 assignment talks about the strategic decision taken by the General Motors Company regarding cutting off its North American employees for the purpose of restructuring the organization. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. Get browser notifications for breaking news, live events, and exclusive reporting. At the end of 2022, General Motors employed about 86,000 hourly workers and 81,000 salaried employees worldwide. The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. I think for any organization whether its GM or others the first priority is always focusing on long term growth and sustainability of the Company. However, the company called these headcount reductions attrition and not layoffs. On top of its EV push, General Motors is also working hard on developing its own EV battery platform, another likely growth catalyst on the road ahead. General Motors Announces Sweeping Layoffs for North American Workers, Personal Analysis of the decision taken by General Motors, Performance Appraisal at Bank of Kathmandu | Human Resource Management, Writers Block Overcoming Writers Block | Managerial Communication, Karmachari Sanchaya Kosh - | Employees Provident Fund Nepal, Key elements of Organizational Behavior - People, Structure ,Technology & External Environment | Organizational Behavior, Perceptual Errors -Types of Perceptual Error | Fundamentals of Organizational Behaviour, Types of Groups - Formal and Informal Group | Group Behavior and Team Development, Difference between Manufacturing and Service Operations | Operation Management, Maryland Warren Transmission Operation, Michigan. Enter your email to receive our newsletter. Following recent price cuts for Tesla vehicles and Ford's Mustang Mach-E crossover, Jacobson said GM feels its EVs "are well positioned" with pricing. All Rights Reserved. General Motors on Tuesday reported solid fourth-quarter and record year-end financial results, despite being plagued with production disruptions for much of 2021. This will also see it reducing its number of executives by 25% as a way to cut costs and streamline decision making. The company has a "work appropriately" policy that gives employees flexibility to work where they want, when the work permits. The cuts affect about 500 positions, according to a person familiar with the plans, which were announced internally Tuesday. In a letter to shareholders on Jan. 31, Barra said that the company earned a record $14.5 billion for 2022 while its hourly employees earned a record profit-sharing totaling $500 million. FLINT, Mich. (WJRT) - The global microchip shortage continues to affect Mid-Michigan auto workers. About Us; Staff; Camps; Scuba. Overview Of General Motors And Toyota. CEO Mary Barra assured Wall Streetthat the company is taking cost-cutting measures, such as dialing back on new hires,and is prepared to do more if needed. "To deliver on our commitments and win in this industry, we must have a winning team and hold ourselves accountable for performing at a high level; by focusing on our efficiency, we are preparing for a more competitive environment," Barnas said. Further, the video highlights that the Company wants to shift toward future-forward technology with a leaner and profitable business. When it reported 2022 Q4 earnings on Jan. 31, CEO Mary Barra stated, I do want to be clear that were not planning layoffs.. Sign up and stay up to date with our daily newsletter. "We continue to shift resources to EVs, with around 75% of our product-specific capital dedicated to EVs and AVs," GM CFO Paul Jacobson said on Jan. 31, as quoted by the same outlet. GM is currently investing billions in electric vehicles after its Chevrolet Bolt EV and Bolt EUV saw record sales last year. Leading automaker General Motors (NYSE:GM) is eliminating hundreds of executive-level and salaried jobs globally to reduce costs. GM also announced Tuesday an equity investment of $650 millioninLithium Americas Corp. to develop a lithium mine in Nevada known as Thacker Pass. The Company wants to adopt a new international strategy for serving the players in those markets in a better way. GM said Monday it launched production of the GMC Hummer SUV EV at a plant in Detroit. Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. after saying earlier this year that it didnt plan layoffs. The amount of customers buying cars in the U.S. is down, which has the company shifting focus toward other products. Iwao Fusillo, GM's chief data and analytics officer, said the company is developing electric and autonomous vehicles, safety features and subscription services, all driven by software. In fact, its in the green today, but that doesnt mean investors shouldnt be thinking about the General Motors layoffs and what they may mean for the companys future. Here's how GM performed to close out last year, compared with analysts' estimates as compiled by Refinitiv: The fourth-quarter results easily topped a year earlier, when the automaker reported an adjusted EPS of $1.35 and revenue of $33.58 billion for the final three months of 2021. Photograph:(Reuters), General Motors recalls 140,000 Chevy Bolts from US, Canada markets. Retrieved from https://www.cbsnews.com/news/gm-layoff-announcement-sparks-controversy/, Essays, U. Those numbers should help put the news in context, though. Please enter valid email address to continue. GM notes that the major changes to its plants structure and employee headcount has to do with the preference from customers. Per The Detroit News: The move, delivered amid impressive profitability, signals the evolving impact of electrification on legacy automakers like GM. The earnings bring GM's three-year total to $1.2 billion. GM beats expectations on top and bottom line. GM feels they need to optimize themselves as per the change in market conditions and preferences of the customers in order to position themselves in the long-run. General Motors' aggressive hiring plans for this year have cooled, but the automaker reaffirmed Wednesday that it has no plans to lay off any of its workforce. GM is to receive exclusive access to phase one of production, the automaker announced. (2018, December 15). Tracking site Layoffs.fyi predicts that in 2022, as the demand boom spurred by the pandemic quickly faded, technology companies laid off more than 150,000 workers. Actual performance may differ significantly from backtested performance. General Motors Layoffs 2023: What to Know About the Latest GM Job Cuts, 5 Hypergrowth Stocks With 10X Potential in 2023, The Countdown to Destruction Has Already Begun for Exela Technologies Stock, Louis Navellier and the InvestorPlace Research Staff, AMC Stock: The Convergence Trade With a Massive Wrinkle, Cathie Wood Is Betting Big on These 5 AI Stocks, Housing Market Crash Alert: Mark Your Calendars for Feb. 28, RIVN Stock Price Predictions: The Case for Rivian Reaching $26. The hiring spree contrasts with February of 2019, when GM cut about 8,000 white-collar workers worldwide as part of a restructuring that added $2.5 billion to the company's bottom line. Can I Be Laid Off While On Workers Compensation? How High Can the Supreme Court Take SOFI Stock? The cost-cutting drive comes after GM's announcement in January that it aims to save $2 billion in costs over the next two years. The given video about GM Layoffs explains that one of the GMs Canadian plants at Oshawa, Ontario which produces Chevrolet Impala is the home for General Motors and it has been more than a decade the company is operating there (Feick, 2018). General Mills, manufacturer, and marketer of branded consumer foods is to lay off 700 to 800 US and Canada jobs, and 500 to 600 international jobs. According to the Bureau of Labor Statistics, the number of people employed by motor vehicle and parts manufacturers declined by 3,500 in January. Stay up to date with our daily newsletter, Mercedes-Benz Cars To Have 'Supercomputers', Unveils Google Partnership, U.S. Manufacturers See Big Boost From Government Subsidies And Tax Breaks. DETROIT General Motors is cutting hundreds of salaried positions as it follows other major companies, including competitors, in downsizing headcounts to preserve cash and boost profits. Wall Street has been bracing for a"demand destruction"scenario for the last several quarters, with some analysts suggesting automakers may need to execute cost-cutting measures to offset recessionary spending shifts. According to General Motors (NYSE:GM) it is planning to lay off 15% of itssalaried and salaried contract staff. For 2023, GM expects net income attributable to stockholders of between $8.7 billion and $10.1 billion. The company aims to save $2 billion over the next two years by reducing overhead and corporate expenses, according to a Detroit News report. The automaker halted work at But Barra said there continues to be good demand for GM's big pickups and SUVs, which deliver fat profits. https://www.cnbc.com/2019/02/01/gm-readies-to-make-4000-involuntary-layoffs-next Mary Barra, CEO, GM at the NYSE, November 17, 2022. The GM layoffs will also see the automobile manufacturer shutting down two other plants that are located outside of North America. It enjoyed some growth in early February after announcing a partnership with chipmaker GlobalFoundries (NASDAQ:GFS), but the momentum has since faded. "The areas we're focusing on include continuing to reduce complexity in all of our products and reducing corporate overhead expenses across the board," Barra said, as quoted by Auto News. He is ranked in the top 15% of stock pickers on TipRanks. Barra confirmed GM's revised plans to produce 400,000 EVs in North America between 2022 and the first half of next year. We sell all types of. Both General Motors and Ford are investing billions in expanding their presence in the lucrative EV space. No cash balance or cash flow is included in the calculation. EA Lays Off 350 People In Marketing, Publishing, And More. There has been a growing trend in the automotive industry towards cost-cutting measures and streamlining operations. This includes the following plants. Also, the tariff that has been imposed by the US president on steel and aluminum is costing automakers in America around the extra cost of billions of dollars which has created a big market shift. GM layoff announcement sparks outrage and stock increase. Truby could not say whether more cuts are coming. It is shown in the video that the GM didnt close any Mexican and Chinese GM plants might be because of the far below low wages in those countries than in America. The president promises that there will be auto jobs coming to the people around the places like Ohio where the massive layoffs by General Motors are taking GM's net income slipped last year, down by less than 1% from full-year 2021 to $9.9 billion, with a profit margin that was off 1.6 percentage points to 6.3%. However, these arent all the locations that this will be closing up shop. GM's full-year 2022 revenue came in at $156.7 billion, with net income attributable to stockholders of $9.9 billion and adjusted earnings before interest and tax at GM and other manufacturers' cost-cutting initiatives aim to improve their competitiveness and financial performance in light of difficult market conditions. I like our position, and I wouldn't trade it with anyone in our industry. The Company offers its products in a variety of price ranges like $10,000 to $100,000 targeting the entire customers segment from the middle class to the luxury class as per their preferences and affordability. From the video case, it has been clear that the customers no longer want those types of products that have been produced by the plants that are being shut down by 2019. Notify me of follow-up comments by email. In May, GM put its hiring plans to add 3,000 white-collar workers on hold for this year. In my opinion, the decision taken by General Motors regarding restructuring and shift toward the future-forward technology of electric cars and automated self-driving cars is right. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. It will be cutting around 500 executive level positions. The video emphasizes that the blue color workers who built the cars for more than 100 years and supported the company as well as also helped in building America are affected by the layoffs in numerous ways. All in all, GM is planning to cut more than 14,000 jobs with the recent round of GM layoffs. Earlier this month, rival Ford (NYSE:F) announced that it was eliminating 3,800 jobs in Europe over the next three years to streamline its operations and reduce costs. GM stock was up 5% as of Monday afternoon. At that time, GM told the Free Press, the company was ahead of schedule in its hiring. Data is a real-time snapshot *Data is delayed at least 15 minutes. They will be across various functions of the company, said the person, who asked not to be named because the plans are not public. US government wants chip makers to share profits in return for subsidies, Vaccine maker Novavax says substantial doubt on ability to stay in business, China's February manufacturing activity sees fastest growth in over a decade.
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