GM to make more job cuts, trim costs with voluntary separation offers

[rperez817]

Looks like GM is following Ford's lead getting its workforce optimized for an all-electric future. GM to cut jobs, trim costs with voluntary separation offers (freep.com)

 

About a week after General Motors unexpectedly cut several hundred jobs to help it trim costs and form a top-tier workforce to guide its transition to an all-electric car company, CEO Mary Barra told employees Thursday morning that there will be more job eliminations to come — this time voluntary.

In the memo, obtained by the Free Press, Barra told employees that GM will offer a voluntary separation program to all U.S. salaried employees with five or more years of service, and to all global executives with two or more years with the automaker. The memo said the idea is to “accelerate attrition" and, she wrote, "taking this step now will avoid the potential for involuntary actions" in the future.

[akirby]

Almost everyone is cutting jobs due to inflation.

[rperez817]

2 hours ago, akirby said:

Almost everyone is cutting jobs due to inflation.

 

For sure, inflation and the actions being taking by central banks to address that are impacting workforce related decisions in all industries. But the global automotive industry also has to contend with the ongoing revolution involving the transition to BEV, autonomous vehicles, and mobility services away from the design, engineering, production, and marketing of ICE powered vehicles. This is a major factor in Ford's and GM's recent actions to "accelerate attrition" as well as do involuntary job cuts.

[rperez817]

On 3/9/2023 at 10:42 AM, akirby said:

Almost everyone is cutting jobs due to inflation.

 

On 3/9/2023 at 12:23 PM, rperez817 said:

For sure, inflation and the actions being taking by central banks to address that are impacting workforce related decisions in all industries.

 

Data from Litter's Employer Pulse Survey Report: 2023 Economic Outlook released this week. 2023_littler_employer_pulse_survey_report.pdf

 

[rperez817]

GM terminated hundreds of contract workers today. Automotive industry experts say that GM and other incumbent automakers will need to make even more cuts in their workforces over the next few years as they transition to an all-electric future. GM job cuts: Contract workers terminated at Global Technical Center (usatoday.com)

 

“GM, like its other Detroit 3 competitors, struggles continually to realign its cost structure to shift from internal combustion to electrification,” Marick Masters, a business professor at Wayne State University said. “This will require cuts in the salaried and hourly workforces, the contracted workforce, and the disposing of obsolete production assets as result of the shift.  This is not a stationary but rather a moving target, and these kinds of adjustments can be expected as a pace of transition accelerates.”