‘Our strategy is sound in the long term’: General Motors CEO doubles down on restructuring plan that will cut 15,000 U.S. jobs – including 4,000 within the next two weeks

  • GM announced the next phase of its restructing plan on Monday
  • About 4,000 salaried workers are expected to be cut in the next two weeks 
  • Hundreds of jobs will be eliminated at tech centers in Texas, Georgia, Arizona and Michigan, including more than 1,000 jobs at the Warren, Michigan site
  • GM Chief Executive Officer Mary Barra wrote last week: ‘We are more convinced than ever that our strategy is sound in the long term’
  • The layoffs are part of a restructuring plan that will cut a total of 15,000 jobs and end production at five North American plants, to add $2.5 billion in value in 2019

General Motors Co said on Monday that it was starting to hand pink slips to about 4,000 salaried workers in the latest round of a restructuring announced in late November.

GM tech centers in Texas, Georgia, Arizona and Michigan are expected to be hit hardest this time around, as the overall plan will ultimately cut a total of about 15,000 jobs and end production at five North American plants.

That will include a reduction of GM’s white-collar, salaried workforce in North America by 15 percent, which will mean a loss of about 8,100 jobs out of 54,000, and elimination of about one-fourth of its executive positions. 

GM Chief Executive Officer Mary Barra wrote last week: ‘We are more convinced than ever that our strategy is sound in the long term,’ as the company has said the layoffs are part of a restructuring plan that will add up to $2.5 billion to its bottom line this year.  

General Motors Co on Monday said it was starting to hand pink slips to about 4,000 salaried workers in the latest round of layoffs expected to add $2.5 billion in value this year. GM Chief Executive Officer Mary Barra (pictured) wrote last week: ‘We are more convinced than ever that our strategy is sound in the long term,’ as the company has said the layoffs are part of a restructuring plan that will add up to $2.5 billion to its bottom line this year

‘These actions are necessary to secure the future of the company, including preserving thousands of jobs in the US and globally,’ GM spokesperson Pat Morrissey said, adding that the bulk of the cuts should be completed within the next two weeks. 

‘We are taking action now while the overall economy and job market are strong, increasing the ability of impacted employees to continue to advance in their careers, should they choose to do so.’

Two people briefed on the cuts said GM is cutting hundreds of jobs at its information technology centers in Texas, Georgia, Arizona and Michigan and more than 1,000 jobs at its Warren, Michigan Tech Center.

Most of the employees who will be part of this round of cuts are responsible for components for internal combustion engines and discontinued car models. 

Te overall plan will ultimately cut a total of about 15,000 jobs and end production at five North American plants. Two people briefed on the cuts said GM is cutting hundreds of jobs at its information technology centers in Texas, Georgia, Arizona and Michigan and more than 1,000 jobs at its Warren, Michigan Tech Center (pictured)

GM is filing new required mass layoff notices with state agencies and disclosed the cuts to lawmakers.

GM cut about 1,500 contract workers in December and said at that time that about 2,300 salaried workers had accepted buyouts, officials said.

Morrissey said GM would provide salaried workers with severance packages and job placement services.

GM is also cutting its executive ranks by 25 percent. Last week the company laid off three senior people in its Washington office. Some other small salaried layoffs previously took place.


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

GM said in November it would end US and Canadian production of the Chevrolet Cruze, Volt, Impala, the Buick LaCrosse and the Cadillac XTS and CT6 sedans.

Trump, who made a 2017 speech near GM’s Lordstown Assembly plant in Ohio, said in November the company had ‘better’ find a new product for that plant.

In January, Comprehensive Logistics said it would cease operations at its facility in Lordstown that provides logistics and warehousing, a move that impacts about 180 jobs. 

Magna International Inc is also laying off about 120 people at its Lordstown Seating Systems plant that makes seats for GM vehicles.

President Donald Trump and US and Canadian lawmakers have blasted GM’s plans to end production at plants in Ontario, Michigan, Ohio and Maryland. Trump (second from left) is pictured meeting with GM CEO Mary Barra (left), CEO of Fiat Chrysler Automobiles Sergio Marchionne (second from right) and Fiat Chrysler Head of External Affairs Shane Karr (right) in the Roosevelt Room of the White House on January 24, 2017 in Washington, DC

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