GM to Start Laying off Many White-Collar Workers


Late last year, General Motors started buying out thousands of employees and on Monday, began the arduous process of laying off thousands of white-collar employees. A total of 4,000 employees are going to get laid off after the restructuring step is completed. The cuts started on Monday morning after Dhivya Suryadevara, GM’s chief financial officer, sent an email to the employees telling them that the restructuring activities were about to begin. The team leaders were told to inform the remaining employees whenever the process was complete.

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Severance Packages

A line of taxis was parked near the Vehicle Engineering Center; employees had to turn in their company cars and give back the keys. If they had no other means of transportation, they used the taxis situated outside. In most cases, the white-collar workers who were laid off only had about six or eight years of tenure. Therefore, they aren’t likely to receive significant severance packages.

Anyone who got laid off with at least 12 years of experience on the job is set to receive a severance package with healthcare benefits and six months’ pay. In fact, this is the same severance package that GM offered these employees last year.

Shut-Downs

These white-collar layoffs aren’t coming as a surprise to anyone because GM already announced plans to shut down four plants in the United States last November. Two of their car production plants, the Detroit-Hamtramck plant (Michigan) and the Lordstown facility (Ohio) are going to be shut down soon. Along with such, there are two transmission facilities (one in Maryland and one in Michigan) set to stop production in the near future. GM claims that no new vehicles are going to either plant this year, but the company can’t close the locations until it works out a deal with the United Auto Workers union.

 

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GM to Start Laying off Many White-Collar Workers

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