A new round of GM layoffs will result in massive changes at the automobile manufacturer.
According to General Motors (NYSE:GM) it is planning to lay off 15% of its salaried and salaried contract staff. This will also see it reducing its number of executives by 25% as a way to cut costs and streamline decision making.
It isn’t just salaried employees that are going to suffer as a result of the GM layoffs. The company also notes that it has plans to close down several plants in the U.S. This includes the following plants.
- Oshawa Assembly in Oshawa, Ontario, Canada.
- Detroit-Hamtramck Assembly in Detroit.
- Lordstown Assembly in Warren, Ohio.
- Baltimore Operations in White Marsh, Maryland.
- Warren Transmission Operations in Warren, Michigan.
All of these plants will be closing down in 2019. However, these aren’t all the locations that this will be closing up shop. The GM layoffs will also see the automobile manufacturer shutting down two other plants that are located outside of North America.
GM notes that the major changes to its plants structure and employee headcount has to do with the preference from customers. The amount of customers buying cars in the U.S. is down, which has the company shifting focus toward other products. You can follow this link to learn about what cars GM is killing off.
All in all, GM is planning to cut more than 14,000 jobs with the recent round of GM layoffs.
GM stock was up 5% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.