GM's 14,000 layoffs by the numbers
General Motors announced last year it would lay off 14,000 workers in the U.S. as it shifts its focus away from passenger cars in favor of producing SUVs and pickups, as well as electric and self-driving vehicles.
The decision elicited intense federal backlash. President Trump tweeted that he was “very disappointed” and said the administration would examine whether to cut subsidies for the Detroit carmaker.
A White House spokeswoman did not immediately answer whether the administration is still considering it – though there is skepticism over exactly what federal support could be eliminated, aside from potentially a tax credit for electric cars that will gradually expire for GM over the next several quarters given it has already sold more than 200,000 plug-in vehicles.
It has received other government funding for the development of emissions-free cars, per tracking website Good Jobs First.
The reductions are coming from both GM’s salaried and hourly workforces, though a large portion of the individuals who lost manufacturing jobs could be relocated to other plants.
While the announcement led to some immediate volatility in GM’s stock, it has since recovered. The company on Wednesday reported better-than-expected earnings for the fourth quarter, including $2.8 billion in profits in the period.
Below is a breakdown of where GM is at in its layoffs:
Hourly employees: 2,800
GM’s decision to end production in four of its U.S. plants impacted 2,800 hourly workers. The carmaker has said it will have other positions for each of those employees.
“As we’re shrinking production in those plants…we’re growing capacity in other plants where we need additional workers,” a spokesman said.
All of those hourly workers will be given priority for the 1,000 vacancies GM is seeking to fill at its Michigan factory.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 46.46 | +0.88 | +1.93% |
Salaried employees: 8,000
The company offered a voluntary severance package to the white-collar workers impacted by the layoffs. Of the 15 percent that GM was seeking to cut, 2,300 accepted the offer.
The carmaker also cut 1,500 contract employees. It is now in the midst of laying off close to 4,000 salaried workers who did not accept the buyout. Those individuals will also receive a severance package.
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Hourly Canadian employees: 3,200
GM is working with the Canadian government and other entities to find employment opportunities for the blue-collar workers it cut in Canada.