PREMiERdrum Posted December 27, 2011 Share Posted December 27, 2011 General Motors Co. has hired management consultant Hackett Group to help identify areas to cut an undetermined number of white-collar jobs, said two people familiar with the matter. Hackett Group, based in Miami, will help identify opportunities for cuts and efficiency improvements at headquarters and elsewhere in North America, said the people, who asked not to be identified revealing private plans. GM has been trimming engineers and other white-collar staff, said Jay Cooney, a spokesman, who declined to comment on whether the Detroit-based automaker had hired Hackett Group. Chief Executive Officer Dan Akerson has been wringing out costs in recent months as he pushes the automaker to improve margins. The goal is to beat Ford Motor Co.’s forecasted earnings before interest and taxes of 7 percent of sales and target Hyundai Motor Co.’s 10 percent. GM won’t use mass cuts or buyouts as it did before its 2009 bankruptcy, Cooney said. “We are streamlining our business, looking for efficiencies, and to this extent, there will be some headcount reductions and it will be on a global basis,” Cooney said in an e-mail. “GM is continually seeking ways to improve our operating performance and reduce complexity to deliver a world- class cost structure and profit margins.” GM has 141,000 hourly employees and 69,000 salaried employees. At the end of 2008, it had 170,000 hourly workers and 73,000 salaried workers, according to company filings. GM is working to cut vehicle architectures to 14 from 30 by 2018. LINK - Bloomberg Business So, the General pays an outside firm to come in and see where they're wasting money? Does anyone still think GM has caught up to Ford in terms of corporate structure? Even the staunchest GMI fanbois are slamming them for this one. Quote Link to comment Share on other sites More sharing options...
akirby Posted December 27, 2011 Share Posted December 27, 2011 Is it really that hard to figure out? Quote Link to comment Share on other sites More sharing options...
PREMiERdrum Posted December 27, 2011 Author Share Posted December 27, 2011 Is it really that hard to figure out? No! New GM says this is a HUGE improvement! They used to make SIX different utility vehicles off the same platform... Now they only make FOUR THREE! Quote Link to comment Share on other sites More sharing options...
jpd80 Posted December 27, 2011 Share Posted December 27, 2011 (edited) GM does not accept nor understand the basic business principle of right sizing production to true market size how on earth is an outside company ever going to convince them their basic philosophy is as bankrupt as old GM.. Here's a clue, why don't they start wit cutting customer service, I'm sure that department won't be missed.... Edited December 27, 2011 by jpd80 Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted December 27, 2011 Share Posted December 27, 2011 Oh geez. The whole barking company is now a 'Ford fighter'. I'll give you two big reasons why GM can't catch Ford by cutting white collar workers: 1 - Europe 2 - Excess capacity An added reason is that Ford is still run much more tightly than GM on the finance side. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted December 27, 2011 Share Posted December 27, 2011 And targeting Hyundai? They might as well try to build a ladder to the moon. 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted December 27, 2011 Share Posted December 27, 2011 Oh geez. The whole barking company is now a 'Ford fighter'. I'll give you two big reasons why GM can't catch Ford by cutting white collar workers: 1 - Europe 2 - Excess capacity An added reason is that Ford is still run much more tightly than GM on the finance side. IMO, white collar workers are the least of their problems. Oh, GM will continue making money while the economy improves but if it tanks again, they're screwed because they have no contingency. I wish they would stop pretending they reformed their company anything like Ford, at every chance, they slide by doing the minimum to look good in the eyes of buyers. Quote Link to comment Share on other sites More sharing options...
Edstock Posted December 27, 2011 Share Posted December 27, 2011 Senior management should have hired Buddy Hackett instead. It would've been wonderful to see and hear him "tune up" Akerson. 1 Quote Link to comment Share on other sites More sharing options...
akirby Posted December 27, 2011 Share Posted December 27, 2011 GM reminds me of the person who wants to lose weight but isn't willing to exercise. So they constantly overlook the real problem (excess capacity, duplication of products) while looking for a quick fix that will never work. Quote Link to comment Share on other sites More sharing options...
aneekr Posted December 27, 2011 Share Posted December 27, 2011 I worked with Hackett Group consultants on an outsourcing initiative in the procure to pay area (not at GM). Their work was thorough and effective. Senior management should have hired Buddy Hackett instead. It would've been wonderful to see and hear him "tune up" Akerson. He would have made a fine "advisor"! Buddy's incisive wit never gets old. Remember his appearance on Hollywood Squares (the original Peter Marshall era) answering that question about doctors as a proportion of the population? (1:44 in the video below) http://www.youtube.com/watch?v=VO5g-uYppNA Quote Link to comment Share on other sites More sharing options...
jpd80 Posted December 28, 2011 Share Posted December 28, 2011 The GM plan to success: 1. Make lots of vehicles 2. .............. 3. Profit Quote Link to comment Share on other sites More sharing options...
Extreme4x4 Posted December 31, 2011 Share Posted December 31, 2011 The GM truck engineer, who used to be my neighbor, summed it up the best. He said that GM is always restructuring, and all that means is the names on the doors move to different doors. Things are no different today. Quote Link to comment Share on other sites More sharing options...
Mark B. Morrow Posted January 1, 2012 Share Posted January 1, 2012 And targeting Hyundai? They might as well try to build a ladder to the moon. Akerson's plan is to go to the Sun, but don't worry he's got it all figured out. They will go at night. Quote Link to comment Share on other sites More sharing options...
PREMiERdrum Posted January 1, 2012 Author Share Posted January 1, 2012 GM Hires Hackett Group To Help Slim Down Apparently, their first recommendation was to eliminate those pesky, expensive brake pads on the Sonic. Quote Link to comment Share on other sites More sharing options...
Edstock Posted January 2, 2012 Share Posted January 2, 2012 Akerson's plan is to go to the Sun, but don't worry he's got it all figured out. They will go at night. And if they get lost, there's always On Star. 1 Quote Link to comment Share on other sites More sharing options...
97svtgoin05gt Posted January 3, 2012 Share Posted January 3, 2012 Or their newest creation "At a Bar" which is where these white collar people will apparently be once this consultant is through. Quote Link to comment Share on other sites More sharing options...
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