General Motors has announced its plans to lay off an estimated 14,700 workers, nearly 15% of the companies salaried employees.
These lay offs include assembly workers from Detroit; Warren, Ohio; and Oshawa, Ontario, Canada; while also including propulsion workers in White Marsh, Maryland; and Warren, Michigan.
It only gets worse as GM plans to close two more plants outside of North America by next year.
GM released a statement on the matter reading:
“The company is transforming its global workforce to ensure it has the right skill sets for today and the future, while driving efficiencies through the utilization of best-in-class tools. Actions are being taken to reduce salaried and salaried contract staff by 15 percent, which includes 25 percent fewer executives to streamline decision making.”
GM Chairman and CEO Mary Barra also released a statement, “The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future,” she said. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”
In regards to the recent trade war a GM spokeswoman said, “[t]hese decisions are being made as part of our ongoing transformation and are not related to recent trade or tariff decisions.”
The news even prompted a response from President Donald Trump who said that he was “not happy” about the decision. “I believe that they’ll be opening up something else,” he told reporters. “I spoke with her [Barra] when I heard they were closing, and I said ‘you know, this country’s done a lot for general motors. You better get back in there soon.’” He also said that there was a lot of pressure on GM from senators and “a lot of other people.”