Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

GM will layoff 2,000+ by January 2017

(BUSINESS NEWS) General Motors announced on Wednesday that 2,000 jobs will be shed between two plants in Ohio and Michigan.

layoff

Catching back up

In its first round of layoffs since 2010, General Motors announced this week that 2,000 jobs will be shed between two plants in Ohio and Michigan.

The layoffs come in the face of the slumping small-car market, with the two affected locations responsible for producing the Cadillac ATS, Cadillac CTS, Chevrolet Camaro, and the Chevrolet Cruze.

bar
Days Supply, a key metric for determining the ability of the market to meet demand, for each of those vehicles was nearly double the industry benchmark for what’s considered an appropriate amount of inventory to have on hand. Each plant will still continue to operate to produce the same cars as they do now, but with fewer employees and shifts to do so, to allow demand to catch up to supply.

What the market wants

The market has preferred GM’s offerings of SUVs, pickups, and crossover vehicles this year, with gasoline prices remaining low. Additionally, GM cut back on sales of the Cruze to rental car companies, which generated a lower revenue margin for the company.

This has led to sales of the Cruze being down nearly 20%, according to GM spokesman Tom Wickham, while the sales of the other three vehicles are down between 8%-16% overall this year.

Advertisement. Scroll to continue reading.

Timing is everything

Although such an announcement might be seen to have been delayed until after Election Day, GM spokesman Tom Wickham, speaking to CNN, stated that the company didn’t announce this planned round of layoffs prior to the election because it did not want to be accused of attempting to influence the election results, and that the timing was related instead to providing the affected employees the 60-day closure notice that they are required to under the Worker Adjustment and Retraining Notification Act (WARN Act).

The WARN Act is a federal law that requires employers with more than 100 employees to provide at least 60 day notification of plant closures, along with assistance to workers in providing for additional training and job interview assistance.

Investing in other regions

On the heels of the notification that the company was shedding 2,000 jobs, GM also announced that the company was looking to invest more than $900 million in infrastructure additions to other plants across the nation, with a $211 million investment at Lansing Grand River, $667.6 million for future products at Toledo Transmission, and $37 million at Bedford Casting Operations.

The result of these additional investments would allow the company to retain over 775 jobs which would otherwise be cut, according to the company.

In addition to these investments, GM has also confirmed their commitment to investing over $5 billion in their Mexican auto plants over the next six years, despite the recent changes in the US political climate.

Advertisement. Scroll to continue reading.

#GMLayoffs

Written By

Roger is a Staff Writer at The American Genius and holds two Master's degrees, one in Education Leadership and another in Leadership Studies. In his spare time away from researching leadership retention and communication styles, he loves to watch baseball, especially the Red Sox!

Click to comment

Leave a Reply

Your email address will not be published.

AdBlocker Message

Our website is kept FREE to you by displaying online ads to our visitors. Please consider supporting us by disabling your ad blocker OR subscribing to our email newsletter: https://theamericangenius.com/get-american-genius-newsletter/

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business Finance

Layoffs have been trickling in and more are feared - market conditions have combined to pave the way for more, but it's not inevitable...

Business News

(BUSINESS) After a recording of layoffs leaks, 'supply chain' issues cause shipping increases, and they consult for cost-cutting, Peloton is doomed.

Business News

(NEWS) Better.com CEO, Vishal Garg is no stranger to controversy, but now he emotionlessly laid off 900 employees, effective immediately, via Zoom.

Opinion Editorials

(EDITORIAL) Is it good form for your position to be replaced in the middle of a pandemic? No. Is it legal? Well, usually, but...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.