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. GM is to receive exclusive access to phase one of production, the automaker announced. General Motors' announcement of cutting executive-level and broader jobs is part of the automaker's efforts to reduce its structural costs and enhance efficiency. Please enter valid email address to continue. You can follow this link to learn about what cars GM is killing off. WebHome. He is ranked in the top 15% of stock pickers on TipRanks. Not only the workers but also the ancillary units around the plant are affected by the strategic decision of layoffs by the company. Barra confirmed GM's revised plans to produce 400,000 EVs in North America between 2022 and the first half of next year. Got a confidential news tip? The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. 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. Changes in these assumptions may have a material impact on the backtested returns presented. Mary Barra, in a letter to shareholders, described. Revolut Auditor Flags Concern About $576 Million Of Revenue In Long-delayed 2021 Accounts, VinFast Slashes Lease Prices For First U.S. It is considered that GM didnt build Oshawa rather Oshawa built General Motors. But more important to note is the fact that GM is in a period of transition. "That's why we're already taking proactive steps to manage costs and cash flows, including reducing some discretionary spending and limiting hiring to critical needs and positions that support growth. When it reported 2022 Q4 earnings on Jan. 31, CEO Mary Barra stated, I do want to be clear that were not planning layoffs.. General Motors expects its 2023 capital expenditure in the range of $11 billion to $13 billion. About Us; Staff; Camps; Scuba. The logo of General Motors is seen in a file photo. The news regarding the strategic decision of employee layoff has been welcomed by the investors which led to the increase in the stock price of GM by 4.8% which was the highest closing price GM has had in about these three months (CBSNews, 2018). Most investors dont have major gainers like TSLA or NVDA on their radar from the start. General Motors Co. (NYSE: GM) on Tuesday reported a strong fourth quarter and full-year 2022 The company is providing severance for the employees that are laid off. General Motors had about 86,000 hourly employees and nearly 81,000 salaried employees as of the end of 2022. Hundreds of job cuts indicate a very small percentage of the overall headcount. Ford Motor Co. said it was cutting 3,000 jobs, GM put its hiring plans to add 3,000 white-collar workers, GM to reinstate a dividend and start stock buybacks, signaling confidence, GM's joint venture considers location near Michigan border for 4th battery plant, Your California Privacy Rights / Privacy Policy. Copyright 2023 InvestorPlace Media, LLC. "In order to execute against that, we need to bring in thousands and thousands of tech talent," he said. The strong report suggests GM is hanging onto record, or near-record, results even as the U.S. automotive industry begins to normalize after several years of record-low inventories and resilient consumer demand. Copyright Wedbush Analyst Daniel Ives recently stated cost-cutting is part of this process, indicating that investors shouldnt be worried. I believe it is completely ok for a company trying to adapt to the changing market conditions and planning to produce vehicles that are preferred by the customers considering the long term sustainability of the company. At the end of last year, GM employed about 86,000 hourly workers and 81,000 salaried employees worldwide. General Motors' announcement of cutting executive-level and broader jobs is part of the automaker's efforts to reduce its structural costs and enhance efficiency. 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. WebGeneral Motors is reportedly cutting around 500 jobs, a month after CEO said Were not planning layoffs Bill Peters 3 mins ago General Motors Co. on Tuesday said it is cutting GMs layoffs start Monday, at least 4,000 expected to lose jobs. Companies like Amazon, Walt Disney, Facebook owner Meta, and American banks have had to cut back on staff due to rising interest rates and sluggish consumer demand. Customers are the king of any business and if the business does not try to adapt to the changing demand of customers it will no longer sustain in the long run and can make a profitable business. There has been a growing trend in the automotive industry towards cost-cutting measures and streamlining operations. The 500 job cuts make up less than 1% of GMs salaried workforce. January 26, 2022 / 3:35 PM "There are growing concerns about the economy to be sure," Barra said last quarter. Backtested performance is developed with the benefit of hindsight and has inherent limitations. Read more onGeneral Motorsand sign up for ourautos newsletter. On Monday, crosstown rival Ford Motor Co. said it was cutting 3,000 jobs across Canada, the U.S. and India. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. FOLLOW MORE IBT NEWS ON THE BELOW CHANNELS, IBT Fast Start - Let the best of International News come to you. WebFind company research, competitor information, contact details & financial data for General Motors Company of Ashburn, VA. Get the latest business insights from Dun & Bradstreet. Two Wall Street Legends will reveal their #1 recommendations and full "roadmap" for navigating the coming AI revolution. The area around the plant is designed in such a way that the shutting down of the GM plant will affect the entire city. The job reductions are in the low hundreds, Reuters reported. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The development of electric and driverless vehicles, which need a large amount of funding and R&D, also puts pressure on automakers. The , https://www.washingtonpost.com/business/2018/11/26/gm-lay-off-percent-salaried-workers-halt-production-five-plants-us-canada/, Nov 26, 2018 Amid global restructuring, General Motors announced Monday it would reduce its North American production and salaried and executive . 2022 CBS Broadcasting Inc. All Rights Reserved. (2019, March 26). GM guided toward 2023 results above what Wall Street was expecting. Wall Street has been bracing for a"demand destruction"scenario for the last several quarters, with some analysts suggesting automakers may need to execute cost-cutting measures to offset recessionary spending shifts. Tracking site Layoffs.fyi predicts that in 2022, as the demand boom spurred by the pandemic quickly faded, technology companies laid off more than 150,000 workers. Shares have advanced 15% so far in 2023. A Division of NBCUniversal. We are limiting our hiring to only the most strategically important roles, and we'll use attrition to help manage overall headcount.". How High Can the Supreme Court Take SOFI Stock? GM's net income slipped last year, down by less than 1% from full-year 2021 to $9.9 billion, with a profit margin that was off 1.6 percentage points to 6.3%. On Wednesday, Raynal told the Free Press, "We are not planning layoffs." Can I Be Laid Off While On Workers Compensation? Mary Barra, CEO, GM at the NYSE, November 17, 2022. As of December 2022, GM had about 86,000 hourly employees and 81,000 salaried employees worldwide. Get browser notifications for breaking news, live events, and exclusive reporting. (2011, May 17). General Motors Cost Reduction Efforts. "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. GM forecast 2023 net automotive cash from operating activities to come in between $16 billion and $20 billion and sees automotive free cash flow of $5 billion to $7 billion. GM said in a statement Wednesday that it's expanding teams that develop vehicle software, engineer hydrogen fuel cells for non-automotive uses, and develop new battery designs. 2023 InvestorPlace Media, LLC. The company has been moving to expand its revenue sources with ventures outside of selling automobiles. This material may not be published, broadcast, rewritten, or redistributed. 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 IBTimes 2023. Retrieved from Kotaku: https://kotaku.com/ea-lays-off-350-people-in-marketing-publishing-analyt-1833575289. Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. Please note all regulatory considerations regarding the presentation of fees must be taken into account. By the end of April, GM had transferred about 1,305 of the nearly 2,800 affected to jobs at its other U.S. plants, said company spokesman Dan Flores. He said GM is being "appropriately cautious" but vehicle inventories remain constrained amid strong demand. The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. 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. after saying earlier this year that it didnt plan layoffs. During the companys Q4 2022 earnings call in January, CEO Mary Barra stated, I do want to be clear that were not planning layoffs.. Sign up for free newsletters and get more CNBC delivered to your inbox. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. And I believe that the decision taken by General Motors regarding restructuring and shift toward the future-forward technology of electric cars and automated self-driving cars is right. In a Tuesday letter viewed by CNBC, GM Chief People Officer Arden Hoffman confirmed the company's goal of $2 billion in cost savings over the next two years, which "we'll find by reducingcorporate expenses, overhead, and complexity inallour products.". The company believes that it is better to do restructuring when both the company and economy are strong. Still, the automaker is showing signs of a margin squeeze. In 2018 and 2019, GM cut about 4,000 salaried jobs,mostly in North America,as part of its restructuring. 2023 CNBC LLC. Last year, nearly one-third of its new hires were women and 42% were from underrepresented minority groups, it said. (2018, December 15). The given video about GM Layoffs explains that one of the GMs Canadian plants at Oshawa, Ontario which produces Chevrolet Impala is the home for General Motors and it has been more than a decade the company is operating there (Feick, 2018). The Company wants to adopt a new international strategy for serving the players in those markets in a better way. Leading automaker General Motors (NYSE:GM) is eliminating hundreds of executive-level and salaried jobs globally to reduce costs. Follow her on Twitter@jlareauan. But Barra said there continues to be good demand for GM's big pickups and SUVs, which deliver fat profits. All Rights Reserved. That includes taking out "significant cost" by 2020 as GM transformed the company. On the date of publication, Samuel OBrientdid not have (either directly or indirectly) any positions in the securities mentioned in this article. 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