General Motors is expected to lay off about 4,000 salaried workers under a reorganization announced late a year ago, a person familiar with the matter said Friday. In addition, GM will also begin to slash its global executive workforce by 25 percent but has not announced a timeframe in which it will begin white collar layoffs.
With the restructuring, GM is expected to save about $6 billion by 2020, according to the Detroit News.
The reduction of about 14,000 jobs was first announced in November, along with plans to close four USA plants and one in Canada while discontinuing several sedan models. "GM's CEO Mary Barra is clearly not timid about making bold decisions to implement radical change, whether it be forging new technologies or the gut-wrenching shuttering of factories". The company also announced plans to shutter facilities in Maryland and MI.
The president said he was "very tough" on Barra in a phone call after the company announced the closures, and referred to the federal auto bailout money the company received in 2008.More news: TMZ: ‘Young and the Restless’ star found dead at age 52
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"You know, the United States saved General Motors, and for her (Barra) to take that company out of OH is not good", Trump said past year. Friday's job report beat expectations, showing more than 300,000 jobs were created last month.
As first reported this weekend by The Detroit News, sources within the company state the job cuts - reportedly expected to climb to 6,000 by the spring - are part of efforts to save the company $2.5 Billion this year. Another 1,500 contracted employees are said to have not been offered an extension or renewal on their contracts.
GM is scheduled to release its fourth-quarter earnings on Wednesday.