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DETROIT (AP) – General Motors will try to cut costs by offering buybacks to about 18,000 white-collar workers in North America.
The company made the offer Wednesday to employees of 12 years and over service.
The announcement comes the same day that GM announced a profit of $ 2.5 billion in the third quarter. In a prepared statement, the company says that while it is doing well, it wants to continue to reduce costs while the company and the economy are strong.
The auto industry faces imminent problems, such as slowing sales in the United States and China, and rising prices for steel and aluminum due to US tariffs.
GM would not disclose the terms of the bids. The company employs approximately 50,000 people in the United States, Canada and Mexico.
Company spokesman Patrick Morrissey did not say whether GM was trying to reach a target number of employees. Those to whom the offer was made have until November 19 to make a decision and will leave the company by the end of the year, he said. .
"Despite the progress we have made, we are taking proactive steps to get ahead by accelerating our efforts to improve the overall performance of our business, and we are doing so while our society and economy are strong. Voluntary departure for eligible employee employees is an example of our efforts to improve profitability, "said the company.
GM has long talked about cutting costs in anticipation of an economic downturn. The company strives to continue to generate profits through the sale of vehicles while investing in new technologies such as electric cars or autonomous cars. The company is on track to deliver on its promise to reduce overhead costs by $ 6.5 billion a year by the end of this year.
Savings on workforce reductions would come in 2019, after the start of redemptions.
Morrissey would not say if GM will start firing employees if too few workers take voluntary buyouts.
"We will evaluate the need to implement it after learning about the results of the voluntary program and other cost reduction efforts," he said.
Retired CFO Chuck Stevens hinted at white-collar job cuts in April 2017 when he told analysts that GM was looking for cuts, as it would simplify operations after it was released. 39; Europe. Simplification "will allow us to take an important structure of the company, whether it is the staff of the company or the engineering staff," he said. said during a conference call about the results.
Last year, GM sold its European Opel and Vauxhall units to the French PSA group.
Most of GM's employees are located in the United States, mainly in Michigan, at Detroit's headquarters, in a huge technical center in the suburbs of Warren, at a test center near Milford, and in a central location. development of engines and transmissions at Pontiac.
GM shares, which had risen about 7% after the company announced its third quarter results on Wednesday morning, rose nearly 10% after the announcement of buybacks. Stocks down since June rose $ 3.20 to $ 36.73.
(Copyright 2018 The Associated Press. All rights reserved. This material may not be published, distributed, rewritten or redistributed.)
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