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General Motors is proposing voluntary buyouts to 18,000 employees, recognizing Wednesday that there were not enough takers, he could consider layoffs in early 2019.
Shortly after reporting With third-quarter results better than expected, GM CEO Mary Barra informed employees by e-mail.
GM workers in North America with at least 12 years of experience are eligible, said spokesman Pat Morrissey.
This decision is part of GM's cost-cutting plans, which include a target of $ 6.5 billion for 2018. The savings resulting from the job cuts will not benefit GM until 2019, Morrissey said.
GM, which has posted good results for the third quarter, will continue to recruit and hire the workers needed for next-generation transportation, Morrissey said.
Approximately 18,000 GM employees have at least 12 years of experience. There is no internal target for the number of GMs willing to accept bids, but in general, the turnout is "relatively low," Morrissey said.
According to Mr. Morrissey, depending on the number of workers retained by the bid and other cost reduction efforts, "we will re-evaluate the possibility of setting up a non-voluntary program after the start of the year".
At the same time, GM will continue to recruit talent in certain areas of the sector it is developing, including engineering and technology for its work on autonomous and electric cars, he said.
"We still need to acquire new talent.We are trying to cut costs while continuing to work for the future of mobility," Morrissey said. "We will continue to recruit in certain areas of the business."
Business consultants say that it makes sense for GM to continue hiring in certain areas, but warn that it may have a cost.
"This is the right thing to do for the company, but it will be a big bone of contention from those who have been deported or fired for lack of the necessary skills," said Jon Gabrielsen of J.T. Gabrielsen Consulting. Gabrielsen is a market economist who advises automakers and automakers.
The company hired 17,000 employees and employees at the time of the last two years and has spent $ 1 billion to renovate its offices into modern workspaces. It also won two major investments in its work on autonomous vehicles, the Japanese companies SoftBank and Honda teaming with the Cruise division of the automaker.
The company says that 40% of its 67,000 full-time employees worldwide have been hired over the past five years.
Employees eligible for buyback have until Nov. 19 to make a decision. Those who opt for the buyback have until the end of the year to continue with GM, severance pay taking effect January 1.
Crosstown's rival, Ford, is also working to reduce its hired workforce but has not yet specified the number of jobs it plans to cut.
In the third quarter, GM reported pre-tax net income of $ 3.2 billion, up 25% from a year earlier. It recorded a loss of $ 5.4 billion in the third quarter of last year after the sale of its European operations.
After taxes, net profit was $ 2.5 billion.
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