Recently, GM (General Motors) expected at least 7,000 of white-collar employees would sign up for a buyout bid, but executives told employees in the last week that it was likely to backfire. This raised the outlook of significant layoffs.
The number stepping forward for the bid is likely to be closer 4,000 on the basis of estimates done by an accountant. That means 3,000 or more employees in North America can be cut off in January if the auto manufacturer actually opts for forced job reductions, which it has said it would think of if the buyouts fell short. This was said by several managers during the department meetings held recently, employees who attended the meetings reported to The Free Press. The meetings were conducted in the last moment for attempting to help employees—with 12 or more than 12 Years service at GM—whether they aspire to take a voluntary buyout or not. The meetings were conducted as informational and GM executives told workers that nobody is under pressure for signing up or fear that they would be fired or terminated if they do not sign up. A GM spokesperson stated that they were not aware of any company-wide meetings or any numbers or targets the company has planned or would share with workers.
Recently, GM was also in news as its stocks dropped by 14% in the current year. In the past year, GM gained strong profits on good sales and demonstrated that it is positioned to be a leader in electric-vehicle and self-driving technologies. But in 2018 GM’s share price has been experiencing a roller coaster. Recently, the market was down by about 14% since January 1, 2018. The company expects to persist making good profits and progress on CEO Mary Barra’s long-tenure plan to enhance its margins ahead.