GM to start laying off 4,000 salaried workers on Monday

Layoffs for about 4,000 salaried staff at General Motors are due to start Monday -- a previously announced move that comes just as President Donald Trump pre...

Posted: Feb 3, 2019 7:29 AM

Layoffs for about 4,000 salaried staff at General Motors are due to start Monday -- a previously announced move that comes just as President Donald Trump prepares to trumpet American manufacturing at next week's State of the Union address.

The layoffs are part of a 15% reduction in white collar jobs in North America that the automaker first announced back in November. At the same time, it announced plans to close four US plants as well as a fifth in Canada.

The job cuts and plant closings are part of ongoing cost reductions to free up $6 billion annually to invest in a new generation of autos, such as electric and self-driving vehicles. It is also making a push to develop a ride hailing service that will allow GM to make more money by selling rides to customers rather than vehicles.

But the move enraged Trump, who repeatedly lambasted GM CEO Mary Barra over the decision. In his rebuke of GM, Trump focused on the closures in Ohio, a state he won in the 2016 election. The company also announced plans to shutter facilities in Maryland and Michigan.

He said the company would face punishment for the closures, which included a plant in Lordstown, Ohio, that Trump personally promised to revive during the 2016 campaign.

The president said he was "very tough" on Barra in a phone call after the company announced the closures, and referred to the federal auto bailout money the company received in 2008.

"You know, the United States saved General Motors, and for her to take that company out of Ohio is not good," Trump said in November.

He commiserated about the closures in a series of phone calls with his Canadian counterpart Justin Trudeau. And he claimed GM would soon announce steps that could counteract the effect of the plant closures, though what those actions are remain unclear.

Trump is due to tout his economic successes on Tuesday during the annual State of the Union address to Congress. A senior administration official said Friday the speech's theme would be "Choosing greatness."

Overall, Trump is presiding over a strong American economy. Friday's job report beat expectations, showing more than 300,000 jobs were created last month. But trade tensions and global economic anxiety have led some companies to rethink their business plans and sparked concerns about the risk of a slowdown.

The GM plants, which include about 6,000 hourly jobs, have yet to close, GM is moving ahead with the salaried staff reductions, a GM spokesman confirmed Friday. The timing of the layoffs was first reported by the Detroit News.

The company had about 2,300 salaried staff accept voluntary buyout packages that were offered to 18,000 employees. In addition, there were 1,500 contract employees who were not retained by the company.

That leaves the remainder of the 8,000 planned job cuts to be accomplished with the involuntary layoffs.

GM (GM) is due to report financial results Wednesday and it is expected to report lower earnings.

Indiana Coronavirus Cases

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Cases: 613228

Reported Deaths: 9728
CountyCasesDeaths
Marion846851338
Lake45676687
Allen32980552
Hamilton29649315
St. Joseph27531382
Elkhart24478345
Vanderburgh19610250
Tippecanoe18108141
Johnson15191295
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Hendricks14485250
Madison11044222
Clark10811144
Vigo10795181
Monroe9458113
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Bartholomew6640100
Floyd6507110
Wayne6177162
Grant6027116
Dubois558680
Boone556468
Morgan548695
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Marshall506984
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Noble475659
Jackson427747
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Lawrence393780
Clinton375044
Gibson374459
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Ohio Coronavirus Cases

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Cases: 868656

Reported Deaths: 10768
CountyCasesDeaths
Franklin102154707
Cuyahoga865201153
Hamilton64744448
Montgomery43516419
Summit35250762
Lucas31663631
Butler31268232
Stark26096443
Warren19830142
Lorain19296229
Mahoning17471339
Lake16250154
Clermont16128112
Delaware1453680
Licking13326137
Fairfield1294981
Trumbull12920317
Greene12174141
Medina11732168
Clark11058265
Wood10457158
Allen9988127
Portage9454111
Miami924473
Richland9236118
Marion7486113
Tuscarawas7440183
Columbiana7409124
Pickaway732150
Wayne7111172
Muskingum710342
Erie6221130
Ross5558100
Hancock555292
Scioto542764
Geauga515955
Darke473492
Lawrence460658
Union456928
Ashtabula456473
Sandusky439562
Mercer435089
Seneca433866
Huron432841
Auglaize424164
Shelby422522
Jefferson422469
Belmont421145
Washington394240
Athens38389
Putnam378075
Madison358129
Knox356122
Ashland349038
Fulton340443
Defiance334486
Crawford325774
Preble322737
Brown315821
Logan312132
Ottawa296543
Clinton291543
Williams280367
Highland279018
Jackson265845
Guernsey257126
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Morrow23464
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Holmes226774
Henry221953
Hardin215533
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Van Wert203445
Gallia199826
Wyandot196751
Pike178017
Adams177715
Hocking173224
Carroll157616
Paulding145321
Noble121040
Meigs109724
Monroe102232
Harrison89921
Morgan83931
Vinton71314
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