Economy

GM cutting 4,000 workers in latest round of restructuring

GM cutting 4,000 workers in latest round of restructuring

GM has a broader plan that will see three North American assembly plants and two component factories close by the end of 2019.

"This is about making sure that GM is lean and agile", Barra said in announcing the cuts, adding that the automaker wants to trim back some of its more bloated operations in order to help it fund its aggressive push into mobility services, such as autonomous ride-sharing, as well as electrified vehicles.

GM expects the moves to contribute $6 billion in annual cash savings by 2020 - $4.5 billion in cost reductions and $1.5 billion in lower capital expenditures.

General Motors says it has largely completed salaried job cuts in Canada as part of a wider restructuring announced last November. In his rebuke of GM, Trump focused on the closures in OH, a state he won in the 2016 election.

Along with letting workers go, GM is also closing four manufacturing plants in the United States and another in Canada.

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But the automaker has taken serious heat for the plant closings and job cuts, with Barra facing days of critical meetings on Capitol Hill, as well as excoriating tweets from President Donald Trump. "You don't know if you should plan ahead for anything or not?" A senior administration official said Friday the speech's theme would be "Choosing greatness".

There are also concerns of a slowdown in the market in the next couple of years. The cuts include eliminating about 8,000 salaried workers, or about 15 per cent. The timing of the layoffs was first reported by the Detroit News.

Canada spokeswoman Jennifer Wright says the salaried-employee reductions in Canada have mostly been accomplished already through voluntary incentivized packages. Another 1,500 contracted employees are said to have not been offered an extension or renewal on their contracts.

GM reports its 2018 full year and fourth-quarter earnings Wednesday.