General Motors Co. (NYSE: GM) on Tuesday reported a strong fourth quarter and full-year 2022 earnings that outperformed expectations. The company is more focused on innovation which led it to shift towards electric cars and automated self-driving cars in the future. (2018, November). Global Business and Financial News, Stock Quotes, and Market Data and Analysis. More:GM to reinstate a dividend and start stock buybacks, signaling confidence, More:GM's joint venture considers location near Michigan border for 4th battery plant. On the date of publication, Samuel OBrientdid not have (either directly or indirectly) any positions in the securities mentioned in this article. It is considered that GM didnt build Oshawa rather Oshawa built General Motors. https://www.freep.com/story/money/cars/general-motors/2019/02/05/gm-layoffs-severance-pay/2778167002/, Feb 5, 2019 GM was in the second day Tuesday of massive salaried job cuts across its North American offices, targeting about 4,000 workers as part of a , Messages relating to layoffs at General Motors are presented below the company info. The 500 job cutsmake upless than 1% of GM's salaried workforce. CBSNews. 2023 www.freep.com. Sign up below to get this incredible offer! In that interview, Jacobson also said that GM is "not contemplating any layoffs, we don't have any plans to lay off workers" but it has identified $5 billion "of inflationary pressures year-over-year" that has forced GM to adjust some growth plan and to be disciplined with its fixed costs. The Company wants to adopt a new international strategy for serving the players in those markets in a better way. That includes part-time and full-time temporary and direct employees for production and skilled trades at a variety of manufacturing locations and parts warehouses across the state. No cash balance or cash flow is included in the calculation. They come roughly a month after GM CEO Mary Barra and CFO Paul Jacobson told investors that the company was not planning any layoffs. Until recently, the automotive industrywas largelyunaffectedby job cuts that had plagued the technology sector in recent quarters. Its been a complicated month for GM stock, which has been trending downward for the past two weeks. No representations and warranties are made as to the reasonableness of the assumptions. It's working with partners to develop hydrogen fuel cell locomotives, aircraft and generators. But this doesnt mean that investors should be worried about GMs future. 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. Lorem ipsum dolor sit amet, consectetur adipiscing elit. For those thousands of employees affected by layoffs, the company plans in providing many severance programs so that their lives to a better extent. What GMs Layoffs Tell Us About Disruption in the Automotive Sector. GM sought the cuts to raise profit margins and invest more in autonomous and electric vehicles. Listed below are the closing and layoff notices reported to the Virginia Workforce Networks Rapid Response program. Sorry, you have Javascript Disabled! It isnt just salaried employees that are going to suffer as a result of the GM layoffs. Article printed from InvestorPlace Media, https://investorplace.com/2023/03/general-motors-layoffs-2023-what-to-know-about-the-latest-gm-job-cuts/. 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 It enjoyed some growth in early February after announcing a partnership with chipmaker GlobalFoundries (NASDAQ:GFS), but the momentum has since faded. GM's full-year 2022 revenue came in at $156.7 billion, with net income attributable to stockholders of $9.9 billion and adjusted earnings before interest and tax at a record $14.5 billion. Read more onGeneral Motorsand sign up for ourautos newsletter. 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. GM beats expectations on top and bottom line. "Today's action follows our most recent performance calibration and supports managing the attrition curve as part of our overall structural costs reduction effort," spokesman David Barnas said in a statement Tuesday. Its been more than a century that General Motors is operating its business with more than 180,000 employees serving around six continents in the world. On top of its EV push, General Motors is also working hard on developing its own EV battery platform, another likely growth catalyst on the road ahead. Baltimore Operations in White Marsh, Maryland. Wall Streets Moderate Buy consensus rating for General Motors is based on seven Buys and four Holds. GM is currently investing billions in electric vehicles after its Chevrolet Bolt EV and Bolt EUV saw record sales last year. Others such as Rivian Automotive also made salaried cuts, while Stellantis said it would idle a plant in Illinois. Shares of Lithium Americas were up roughly 10% in early trading Tuesday. The hiring spree contrasts with February of 2019, when GM cut about 8,000 white-collar workers worldwide as part of a restructuring that added $2.5 billion to the company's bottom line. Copyright 2023 IBTimes LLC. GM notes that the major changes to its plants structure and employee headcount has to do with the preference from customers. Cutting 500 jobs out of 81,000 is a very small percentage. On Wednesday, Raynal told the Free Press, "We are not planning layoffs." As growth slows in the world's largest economies, additional layoffs are anticipated this year. I like our position, and I wouldn't trade it with anyone in our industry. About Us; Staff; Camps; Scuba. The results come as the U.S. automotive industry is beginning to normalize after several years of record-low inventories. / CW50 Detroit. How High Can the Supreme Court Take SOFI Stock? According to General Motors (NYSE:GM) it is planning to lay off 15% of itssalaried and salaried contract staff. 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. In 2018 and 2019, GM cut about 4,000 salaried jobs,mostly in North America,as part of its restructuring. The company is hyper-focused on shifting its resources and operations to electric vehicle (EV) production. But Barra said there continues to be good demand for GM's big pickups and SUVs, which deliver fat profits. Not only the workers but also the ancillary units around the plant are affected by the strategic decision of layoffs by the company. Retrieved from https://www.cbsnews.com/news/gm-layoff-announcement-sparks-controversy/, Essays, U. The decision by GM comes in response to similar actions taken by other significant automakers, such as Ford Motor and Stellantis, to cut expenses and streamline their operations. During the companys Q4 2022 earnings call in January, CEO Mary Barra stated, I do want to be clear that were not planning layoffs.. In July, GM reported its second quarter income was about 39% lower than the year-ago periodas ongoing production disruptions persisted due to supply chain issues andan industry-wideglobal semiconductor chip shortage. 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. GM guided toward 2023 results above what Wall Street was expecting. Got a confidential news tip? GM will execute a $2 billion cost-cutting plan through the next two years, according to Jacobson. We are limiting our hiring to only the most strategically important roles, and we'll use attrition to help manage overall headcount.". Sign up and stay up to date with our daily newsletter. https://www.cnbc.com/2019/02/01/gm-readies-to-make-4000-involuntary-layoffs-next Save my name, email, and website in this browser for the next time I comment. GM expects some head count reduction due to attrition but the company is "not planning layoffs," Jacobson said. CEO Mary Barra assured Wall Streetthat the company is taking cost-cutting measures, such as dialing back on new hires,and is prepared to do more if needed. January 26, 2022 / 3:35 PM General Motors (NYSE: GM) had previously been trying to hold out on job cuts. When it reported 2022 Q4 earnings on Jan. 31, CEO Mary Barra stated, I do want to be clear that were not planning layoffs.. Barra confirmed GM's revised plans to produce 400,000 EVs in North America between 2022 and the first half of next year. Since late 2020, it has added about 21,000 technical positions. We are limiting our hiring to only the most strategically important roles and we will use attrition to help manage overall headcount, said Barra. The decision of restructuring the organization leads to the cut off of around 15000 workers in North America(Jones, 2019). "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. She clarified that the company aims to All rights reserved. Barra said the company is targeting $2 billion in cost savings in its automotive business over the next two years. 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. A brief introduction of the General Motors. The company is focused on self-driving cars and all-electric vehicles which will not emit any gases that can be harmful to the environment and the people living in it. All Rights Reserved. GM said it incurred special charges in the fourth quarter of $511 million related to a buyout program for its Buick dealers and $657 million related to shuttering its limited operation in Russia. Last week, the automaker reinstated its dividend and said it would start doing stock buybacks. The 500 job cuts make up less than 1% of GM's salaried workforce. Backtested performance is developed with the benefit of hindsight and has inherent limitations. 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. Electric Vehicles More Affordable Than Gas? GM to lay off 4,250 salaried workers in North America starting Monday. The amount of customers buying cars in the U.S. is down, which has the company shifting focus toward other products. ", GM has "modeled several downturn scenarios," she said, and it's prepared to take "more deliberate action when and if necessary.". It is considered that GM didnt build Oshawa rather Oshawa built General Motors. 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