GM cuts thousands of jobs in North America

US automaker General Motors (GM) plans to cut 14,700 jobs in the United States and Canada next year. In addition, deficit models are being phased out, possibly closing three factories in the states of Michigan, Ohio and Ontario, and plan to close the doors of two factories elsewhere in the world. Here the end of next year.

The majority of projected job losses (8,100 jobs) are administrative. The board wants to cut a quarter of management positions. In addition, the jobs of more than 6,000 factory workers are at stake if the closures of the five plants continue. Some workers may be able to continue in other factories. In the United States, GM now has eleven factories, and eleven in Europe. But some of the workers in the factory will be forced to be fired.

The layoff series is about 15% of GM paid staff. With job cuts, about $ 6 billion will be saved next year. The dismissal announced in 2019 follows an ongoing austerity campaign; this year, the board hopes to cut costs by $ 6.5 billion.

United Unions United auto workers react dismayed; they declare in a statement that they will fight "in any possible way of legal, contractual and collective negotiation". Canadian Prime Minister Justin Trudeau reacted Monday by announcing that the government would do everything in its power to help affected families. At the Oshawa plant, employees left their workplace Monday to protest the closure.

Good numbers, despite cuts

In the United States, the sale of gasoline-powered passenger cars has been under pressure for some time, due in part to a rise in raw material prices as a result of US import duties on steel. According to estimates, it would have cost GM more than $ 1 billion. That's why the builder wants to stop the construction of deficit models such as the Chevrolet Cruze, the Cadillac CT6 and the Buick LaCrosse.

The austerity cycle follows remarkably strong figures in the third quarter, with a net profit of $ 2.5 billion and revenue growth of 6.4%. According to Board Chair Mary Barra, the time has come to implement the redundancy cycle. She said Monday that GM wanted to be "an economic malaise while society is strong and the economy is growing."

Investments in autonomous cars and non-combustion engine models continue: according to General Manager Barra, the company is still looking for experienced personnel in this sector. General Motors is the largest automaker in North America and employs 54,000 people. The group employs around 180,000 people worldwide.