What’s The News?General Motors is preparing to lay off at least 4,000 salaried workers that would begin today, ahead of the company's earnings report. Click To Tweet
What Does This Mean?
This decision is part of the company’s massive restructuring program announced back in November to reduce 15 percent of its workforce.
Along with letting off workers, GM is also closing its five manufacturing plants in the United States and another one in Canada.
Why Does It Matter?
The Bigger Market Picture: GM’s reorganization move is expected to save the company about US$6 billion (S$8.1 billion) annually. That money will then be used to invest in new technologies like autonomous cars and as well as ride-sharing services.
While president Trump is miffed at GM over job cuts and has threatened to cut its subsidies, the company has defended its decision as very important for its business in the long term. The company executives are already expecting a profitable 2019 with this progression.
General Motors is yet to comment on how many employees will be involuntarily sacked as a result of the cuts, although it is expected to happen amid this month.
According to the statement given by GM spokesman Pat Morrisey to CNBC he said,
“We are not confirming timing. Our employees are our priorities and we will communicate with them first.”
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