GM is Laying Off Thousands of Workers

GM is Laying Off Thousands of Workers

Armani Adames

General Motors announced Monday, that it would reduce their North American production and salaried, executive workers.

The Detroit-based automaker said it would not be distributing any production to Oshawa Assembly in Ontario, Lordstown Assembly in Ohio, and Detroit-Hamtramck Assembly in Michigan after December 2019. It will also stop distributing production at propulsion plants in White Marsh, Maryland and Warren, Michigan, after December 2019. The company will also be discontinuing production of low-selling models made at those plants throughout 2019, including the Chevrolet Impala, Cruze and Volt, the Cadillac CT6, and the Buick LaCrosse. These changes are part of GM’s efforts to focus its resources on self-driving and electric vehicles, along with more efficient trucks, crossovers, and SUVs.

According to The Washington Post, GM said that they will cut 15 percent of their salaried workforce, laying off 25 percent of their executives to “streamline decision-making.” GM also said they will close two plants outside North America by the end of 2019.

“The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future,” chief executive Mary Barra said. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”

GM expects to save $6 billion in cash as part of the restructuring of the company. This will help GM manufacture the efficient and electrical vehicles that they plan to do.

Many people are glad that these cars aren’t being manufactured anymore, but there is also a huge amount of people very upset about the major loss of jobs.