Published: Tue, February 05, 2019
Money | By Ethel Goodwin

GM begins 'vast majority' of white-collar cuts

GM begins 'vast majority' of white-collar cuts

With the restructuring, GM is expected to save about $6 billion by 2020, according to the Detroit News.

A GM spokesman declined to comment on the timing of the layoffs after CNBC and the Detroit News reported they would begin Monday to get ahead of the company's earnings report.

The company says it will start to cut 4,300 salaried and contract workers worldwide this week, while 2,200 employees have already taken buyouts and another 1,500 contract workers were let go.

But the move enraged Trump, who repeatedly lambasted GM CEO Mary Barra over the decision.

"This industry is changing very rapidly", said Barra at the time.

Starting November 2018, GM offered buyouts to 17,700 employees with at least 12 years of service in the USA and Canada.

President Donald Trump and USA and Canadian lawmakers have blasted GM's plans to end production at plants in Ontario, Michigan, Ohio and Maryland.

The automaker is cutting blue-collar and white-collar staff, though numerous hourly employees will remain on the job until their factories complete the build-out of targeted models like the Chevrolet Cruze built in Lordstown, Ohio, as well as the Cadillac XTS rolling off an assembly line in Detroit.

Ohio - Lordstown Assembly: Manufacturing plant for the Chevrolet Cruze.

Plants in Baltimore, Maryland, and the suburban Detroit community of Warren, Michigan, which make powertrain components, have no products assigned to them after 2019 and are at risk of closure.

About 2,500 workers will be affected by the shutdown of the Oshawa plant.

GM, as part of its statement Monday, reiterated the reasoning and timing of the cuts: "These actions are necessary to secure the future of the company, including preserving thousands of jobs in the USA and globally".

These cuts come after lukewarm interest in the automaker's voluntary buyout packages, an effort to reduce its white-collar salaried and contracted employees by 15%.

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