GM Layoffs: General Motors to Cut 14,000+ Jobs, UPDATE 1-Biden says other companies will slash insulin prices after Eli Lilly move, Japan corporate capex rises despite weaker profits, UPDATE 1-Alphabet's CapitalG appoints insider Laela Sturdy as managing partner, Asia Stocks Edge Higher in Face of Elevated Yields: Markets Wrap, Salesforce CEO Marc Benioff: 'We have hit the hyper-space button'. Ford also said it would pay a 15-cent dividend in the third quarter. The video emphasizes that the blue color workers who built the cars for more than 100 years and supported the company as well as also helped in building America are affected by the layoffs in numerous ways. The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines. In a letter to shareholders on Jan. 31, Barra said that the company earned a record $14.5 billion for 2022 while its hourly employees earned a record profit-sharing totaling $500 million. "That's why we're already taking proactive steps to manage costs and cash flows, including reducing some discretionary spending and limiting hiring to critical needs and positions that support growth. Barra confirmed GM's revised plans to produce 400,000 EVs in North America between 2022 and the first half of next year. During the companys Q4 2022 earnings call in January, CEO Mary Barra stated, I do want to be clear that were not planning layoffs. Barra said the company is targeting $2 billion in cost savings in its automotive business over the next two years. On Wednesday, Raynal told the Free Press, "We are not planning layoffs." All in all, GM is planning to cut more than 14,000 jobs with the recent round of GM layoffs. GM said Monday it launched production of the GMC Hummer SUV EV at a plant in Detroit. The automaker reportedly expects its capital spending to total between $11 billion and $13 billion, with most of the budget reserved for EVs, according to Detroit News. The given video about GM Layoffs explains that one of the GMs Canadian plants at Oshawa, Ontario which produces Chevrolet Impala is the home for General Motors and it has been more than a decade the company is operating there (Feick, 2018). The decision of restructuring the organization leads to the cut off of around 15000 workers in North America(Jones, 2019). General Motors expects its 2023 capital expenditure in the range of $11 billion to $13 billion. They come roughly a month after GM CEO Mary Barra and CFO Paul Jacobson told investors that the company was not planning any layoffs. DETROIT General Motors handily beat Wall Street's top- and bottom-line expectations for the fourth quarter, while forecasting another solid year of results in 2023. The post GM Layoffs: General Motors to Cut 14,000+ Jobs appeared first on InvestorPlace. GM CEO Mary Barra, in a letter to shareholders, described 2023 as a "breakout year" for the company's electric vehicle business, highlighting the introduction of more mainstream products like the Chevrolet Equinox EV as well as increases in production of its current models. GM to lay off 4,250 salaried workers in North America starting Monday. "We continue to shift resources to EVs, with around 75% of our product-specific capital dedicated to EVs and AVs," GM CFO Paul Jacobson said on Jan. 31, as quoted by the same outlet. We want to hear from you. General Motors is cutting hundreds of salaried positions as it follows other major companies, including competitors, in downsizing headcounts to preserve cash and boost profits. The results come as the U.S. automotive industry is beginning to normalize after several years of record-low inventories. January 26, 2022 / 3:35 PM / CW50 Detroit DETROIT (AP) There are more than 8,000 new technical job openings at General Motors, and the automaker GM forecast 2023 net automotive cash from operating activities to come in between $16 billion and $20 billion and sees automotive free cash flow of $5 billion to $7 billion. Its adjusted profit margin was 9.2%, down 2.1 percentage points compared with the previous year. General Motors Cost Reduction Efforts During the companys Q4 2022 earnings call in January, CEO Mary Barra stated, I do want to be clear that were not We continue to shift resources to EVs with around 75% of our product specific capital dedicated to EVs and AVs [autonomous vehicles], said CFO Paul Jacobson during the Q4 earnings call. The company aims to save $2 billion over the next two years by reducing overhead and corporate expenses, according to a Detroit News report. Last year, nearly one-third of its new hires were women and 42% were from underrepresented minority groups, it said. Warren Transmission Operations in Warren, Michigan. "This action impacts a small number of salaried employees and executives globally.". General Motors reports 2022 growth, cost-savings plan for 2023. DETROIT (AP) There are more than 8,000 new technical job openings at General Motors, and the automaker plans to fill them during a hiring spree this year. Get this delivered to your inbox, and more info about our products and services. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Todays action follows our most recent Truby could not say whether more cuts are coming. She also stressed the importance of having the "winning team" to beat the competition and achieve the company's goals. General Motors' announcement of cutting executive-level and broader jobs is part of the automaker's efforts to reduce its structural costs and enhance efficiency. GM announces sweeping layoffs; spares Flint. The company isnt providing the exact number of employees affected in the United States and sites overseas: as of December 2022, GM employed about 86,000 hourly employees and 81,000 salaried employees worldwide.. The TipRanks Smart Score performance is based on backtested results. Tracking site Layoffs.fyi predicts that in 2022, as the demand boom spurred by the pandemic quickly faded, technology companies laid off more than 150,000 workers. But Barra said there continues to be good demand for GM's big pickups and SUVs, which deliver fat profits. The company has a "work appropriately" policy that gives employees flexibility to work where they want, when the work permits. Some of the best brands offered by General Motors are: With the turn in the 21st century, the world is growing in terms of advancement in technology and the concern for environmental protection seems to be mandatory for the automobile industry in order to sustain in the market. 2023 CNBC LLC. The company has been moving to expand its revenue sources with ventures outside of selling automobiles. Sign up and stay up to date with our daily newsletter. Can You Get Laid Off While On Maternity Leave, Can Laid Off Union Workers Collect Unemployment, How Long Does Insurance Last After Being Laid Off. This is supposed to be the only company that has the capacity to produce self-driving vehicles at a scale with fully integrated solution. Ancillary units are formed as they found the opportunity in the state where the GM plant was operating. Further, the video highlights that the Company wants to shift toward future-forward technology with a leaner and profitable business. Here is the breakdown: DETROIT Another 1,600 workers at three General Motors gm factories will be laid off indefinitely over the next few months as the company tries to control its inventory as U.S. sales slump. Ford Motor earlier this month confirmed it would cut 3,800 jobs in Europe over the next three years to adopt a "leaner" structure as it focuses on electric vehicle production. Read more onGeneral Motorsand sign up for ourautos newsletter. General Motors' fourth-quarter results easily topped a year earlier. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Shares have advanced 15% so far in 2023. Sign up for free newsletters and get more CNBC delivered to your inbox, Get this delivered to your inbox, and more info about our products and services., 2023 CNBC LLC. (2019, March 26). We are limiting our hiring to only the most strategically important roles, and we'll use attrition to help manage overall headcount.". The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. The 500 job cuts make up less than 1% of GM's salaried workforce. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. GM stock will likely shake off the impact of layoffs and continue growing as the market rebounds. The Company offers its products in a variety of price ranges like $10,000 to $100,000 targeting the entire customers segment from the middle class to the luxury class as per their preferences and affordability. The Detroit automaker is looking for software, computer, mechanical and electrical engineers, as well as battery engineers, cyber security experts, and others. Retrieved from World Socialist Website: https://www.wsws.org/en/articles/2019/02/02/auto-f02.html, Lau, J. A new round of GM layoffs will result in massive changes at the automobile manufacturer. "We think the underlying business is going to be pretty consistent with what we saw last year, and I think that's a slightly more bullish statement than where most of the market is," he said. / CW50 Detroit. Just over one month later, however, the auto giant has announced that it will be cutting roughly 500 salaried jobs, chiefly at the executive level. Ford gearing up for more layoffs, plant closings. On Monday, crosstown rival Ford Motor Co. said it was cutting 3,000 jobs across Canada, the U.S. and India. But for GM , a company that employs 180,000 people , https://www.cnbc.com/2019/02/01/gm-readies-to-make-4000-involuntary-layoffs-next-week.html, Feb 1, 2019 General Motors is planning to layoff at least 4,000 salaried workers in North America starting Monday ahead of the companys fourth-quarter , https://www.reuters.com/article/us-gm-layoffs/gm-cutting-4000-workers-in-latest-round-of-restructuring-idUSKCN1PT21Z, Feb 4, 2019 GM is also cutting its executive ranks by 25 percent and last week laid off three senior people in its Washington office and some other small , https://abcnews.go.com/Business/story?id=6053665&page=1, DETROIT Another 1,600 workers at three General Motors gm factories will be laid off indefinitely over the next few months as the company tries to control , https://www.theguardian.com/business/2018/dec/27/general-motors-ohio-auto-car-layoffs, Dec 27, 2018 GM stunned its workforce on 26 November, the Monday after Thanksgiving, by announcing it would cut roughly 14,000 jobs and idle five factories , https://www.cnn.com/2020/06/25/business/gm-layoffs-tennessee-covid/index.html, Jun 25, 2020 The company is eliminating the third shift of workers at a plant as of July 31 in Spring Hill, Tennessee, about 40 miles south of Nashville. No representations and warranties are made as to the reasonableness of the assumptions. Cutting 500 jobs out of 81,000 is a very small percentage. Samuel OBrient has been covering financial markets and analyzing economic policy for three-plus years. Notify me of follow-up comments by email. The given video in the CLA1 assignment talks about the strategic decision taken by the General Motors Company regarding cutting off its North American employees for the purpose of restructuring the organization. The president promises that there will be auto jobs coming to the people around the places like Ohio where the massive layoffs by General Motors are taking place. (2018, November). The cuts affect about 500 positions, according to a person familiar with the plans, which were announced internally Tuesday. WebGeneral Motors is reportedly cutting around 500 jobs, a month after CEO said Were not planning layoffs Bill Peters 3 mins ago General Motors Co. on Tuesday said it is cutting Iwao Fusillo, GM's chief data and analytics officer, said the company is developing electric and autonomous vehicles, safety features and subscription services, all driven by software. Wall Streets Moderate Buy consensus rating for General Motors is based on seven Buys and four Holds. January 26, 2022 / 3:35 PM This information is provided for illustrative purposes only. Retrieved from Aierfu: http://aierfu.cc/en/NewscenterDetails.asp?newsid=46, Jones, S. (2019, February 2). All rights reserved. Retrieved from Kotaku: https://kotaku.com/ea-lays-off-350-people-in-marketing-publishing-analyt-1833575289. A Division of NBCUniversal. In a Tuesday letter viewed by CNBC, GM Chief People Officer Arden Hoffman confirmed the company's goal of $2 billion in cost savings over the next two years, which "we'll find by reducingcorporate expenses, overhead, and complexity inallour products.". "Their hard work helped us deliver industry-leading initial quality and meet strong customer demand," Barra said. Barra said last quarter that GM has "a foundation of strong earnings and cash flow, an investment-grade credit rating, historically low pension obligation and outstanding vehicles, services and pricing. https://www.cnbc.com/2019/02/01/gm-readies-to-make-4000-involuntary-layoffs-next General Mills, manufacturer, and marketer of branded consumer foods is to lay off 700 to 800 US and Canada jobs, and 500 to 600 international jobs. On But more important to note is the fact that GM is in a period of transition. We want to hear from you. I believe it is completely ok for a company trying to adapt to the changing market conditions and planning to produce vehicles that are preferred by the customers considering the long term sustainability of the company. On the date of publication, Samuel OBrientdid not have (either directly or indirectly) any positions in the securities mentioned in this article. All Rights Reserved. Revolut Auditor Flags Concern About $576 Million Of Revenue In Long-delayed 2021 Accounts, VinFast Slashes Lease Prices For First U.S. In May, GM put its hiring plans to add 3,000 white-collar workers on hold for this year. For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate., Invest Like a Pro with Unique Data & Simplifed Tools, GM should be bought, not sold, on truck production cut, says BofA, GM to halt Indiana truck plant output for two weeks, Reuters says, General Motors subsidiary, Tawazun Council sign cooperation agreement. It's also partnering with Honda on battery technology and vehicle platforms. quotes delayed at least 15 minutes, all others at least 20 minutes. Per The Detroit News: The move, delivered amid impressive profitability, signals the evolving impact of electrification on legacy automakers like GM. General Motors' aggressive hiring plans for this year have cooled, but the automaker reaffirmed Wednesday that it has no plans to lay off any of its workforce. Since late 2020, it has added about 21,000 technical positions. Backtested performance is not an indicator of future actual results. (2011, May 17). FOLLOW MORE IBT NEWS ON THE BELOW CHANNELS, IBT Fast Start - Let the best of International News come to you. A Division of NBCUniversal. On March 2, This AI "Roadmap" Goes Live. Article printed from InvestorPlace Media, https://investorplace.com/2023/03/general-motors-layoffs-2023-what-to-know-about-the-latest-gm-job-cuts/. Theres even room for more lines. The development of electric and driverless vehicles, which need a large amount of funding and R&D, also puts pressure on automakers. WebDamascus Motors is a licensed Maryland used car dealership. Barra said the company is targeting $2 billion in cost savings in its automotive business over the next two years. According to General Motors (NYSE:GM) it is planning to lay off 15% of itssalaried and salaried contract staff. At the end of last year, GM employed about 86,000 hourly workers and 81,000 salaried employees worldwide. In fact, its in the green today, but that doesnt mean investors shouldnt be thinking about the General Motors layoffs and what they may mean for the companys future. Mary Barra, in a letter to shareholders, described. At the end of last year, GM employed about 86,000 hourly workers and 81,000 salaried employees worldwide. The strong report suggests GM is hanging onto record, or near-record, results even as the U.S. automotive industry begins to normalize after several years of record-low inventories and resilient consumer demand. There has been a growing trend in the automotive industry towards cost-cutting measures and streamlining operations. In my opinion, the decision taken by General Motors regarding restructuring and shift toward the future-forward technology of electric cars and automated self-driving cars is right. Electric Vehicles More Affordable Than Gas? It will be cutting around 500 executive level positions. Sign up for free newsletters and get more CNBC delivered to your inbox. "The areas we're focusing on include continuing to reduce complexity in all of our products and reducing corporate overhead expenses across the board," Barra said, as quoted by Auto News. WebGeneral Motors said it is cutting salaried and executive staff after saying a month ago that it wasn't planning layoffs. All of these plants will be closing down in 2019. In a filing with It is concluded that when a Company wants to go for innovation and adaptation of new technology, the behavior of the individuals and processes affects it as some of the individuals are not ready about the resistance to change which can create job losses which were clearly shown in the given case of General Motors. The letter said the cuts, which follow performance evaluations, wouldimpact a "small number of global executives and classified employees following our most recent performance calibration." General Motors Layoffs 2023: What to Know About the Latest GM Job Cuts, 5 Hypergrowth Stocks With 10X Potential in 2023, The Countdown to Destruction Has Already Begun for Exela Technologies Stock, Louis Navellier and the InvestorPlace Research Staff, AMC Stock: The Convergence Trade With a Massive Wrinkle, Cathie Wood Is Betting Big on These 5 AI Stocks, Housing Market Crash Alert: Mark Your Calendars for Feb. 28, RIVN Stock Price Predictions: The Case for Rivian Reaching $26. Jacobson told investors last month that the company expected to reduce employee headcount through attrition rather than layoffs. Donald Trump also threatened General Motors that he will be cutting all the subsidies that have been provided to them. It is considered that GM didnt build Oshawa rather Oshawa built General Motors. The amount of customers buying cars in the U.S. is down, which has the company shifting focus toward other products. 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