You can view a list of Rapid Response His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. Retrieved from https://www.cbsnews.com/news/gm-layoff-announcement-sparks-controversy/, Essays, U. 2023 InvestorPlace Media, LLC. Wall Street has been bracing for a"demand destruction"scenario for the last several quarters, with some analysts suggesting automakers may need to execute cost-cutting measures to offset recessionary spending shifts. How High Can the Supreme Court Take SOFI Stock? Got a confidential news tip? Earlier this month, rival Ford (NYSE:F) announced that it was eliminating 3,800 jobs in Europe over the next three years to streamline its operations and reduce costs. You can now write for wionews.com and be a part of the community. The TipRanks Smart Score performance is based on backtested results. By the end of April, GM had transferred about 1,305 of the nearly 2,800 affected to jobs at its other U.S. plants, said company spokesman Dan Flores. General Motors is cutting hundreds of salaried positions as it follows other major companies, including competitors, in downsizing headcounts to preserve cash and boost profits. This information is provided for illustrative purposes only. General Motors' announcement of cutting executive-level and broader jobs is part of the automaker's efforts to reduce its structural costs and enhance efficiency. GM said it incurred special charges in the fourth quarter of $511 million related to a buyout program for its Buick dealers and $657 million related to shuttering its limited operation in Russia. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. US government wants chip makers to share profits in return for subsidies, Vaccine maker Novavax says substantial doubt on ability to stay in business, China's February manufacturing activity sees fastest growth in over a decade. Donald Trump also threatened General Motors that he will be cutting all the subsidies that have been provided to them. No representations and warranties are made as to the reasonableness of the assumptions. At the end of last year, GM employed about 86,000 hourly workers and 81,000 salaried employees worldwide. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. On Wednesday, Raynal told the Free Press, "We are not planning layoffs." GM said in a statement Wednesday that it's expanding teams that develop vehicle software, engineer hydrogen fuel cells for non-automotive uses, and develop new battery designs. Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. (2018, December 15). DETROIT General Motors is cutting hundreds of salaried positions as it follows other major companies, including competitors, in downsizing headcounts to preserve cash and boost profits. Still, the automaker is showing signs of a margin squeeze. The impacted employees will be provided with 50% of their basic pay and allowance, as per their last drawn salary. Truby could not say whether more cuts are coming. The letter said the cuts, which follow performance evaluations, wouldimpact a "small number of global executives and classified employees following our most recent performance calibration." 10 Triple-A Stocks to Buy for the Rest of 2018, 5 Market-Beating Stocks for Low-Risk Investors. WebDamascus Motors is a licensed Maryland used car dealership. January 26, 2022 / 3:35 PM / CW50 Detroit DETROIT (AP) There are more than 8,000 new technical job openings at General Motors, and the automaker Shares of Lithium Americas were up roughly 10% in early trading Tuesday. Contact Jamie L. LaReau: jlareau@freepress.com. That means that, while no layoffs loom in the near future, GM is "being prudent in limiting our hiring to critical skill sets," Raynal added. Companies like Amazon, Walt Disney, Facebook owner Meta, and American banks have had to cut back on staff due to rising interest rates and sluggish consumer demand. Those numbers should help put the news in context, though. Retrieved from Kotaku: https://kotaku.com/ea-lays-off-350-people-in-marketing-publishing-analyt-1833575289. As of December 2022, GM employed about 86,000 hourly employees and 81,000 salaried employees worldwide. OBrient loves helping everyone understand the complexities of economics. Nasdaq Also read| General Motors recalls 140,000 Chevy Bolts from US, Canada markets. When it reported 2022 Q4 earnings on Jan. 31, CEO Mary Barra stated, I do want to be clear that were not planning layoffs. Just over one month later, however, the GMs layoffs start Monday, at least 4,000 expected to lose jobs. GM stock will likely shake off the impact of layoffs and continue growing as the market rebounds. Can You Get Laid Off While On Maternity Leave, Can Laid Off Union Workers Collect Unemployment, How Long Does Insurance Last After Being Laid Off. General Motors' aggressive hiring plans for this year have cooled, but the automaker reaffirmed Wednesday that it has no plans to lay off any of its workforce. Aug 12, 2005. Lorem ipsum dolor sit amet, consectetur adipiscing elit. It will be cutting around 500 executive level positions. CBSNews. Job cuts: Many American firms have been downsizing to manage costs. Wedbush Analyst Daniel Ives recently stated cost-cutting is part of this process, indicating that investors shouldnt be worried. The company has a "work appropriately" policy that gives employees flexibility to work where they want, when the work permits. All Rights Reserved. ", GM has "modeled several downturn scenarios," she said, and it's prepared to take "more deliberate action when and if necessary.". Two Wall Street Legends will reveal their #1 recommendations and full "roadmap" for navigating the coming AI revolution. First published on January 26, 2022 / 3:35 PM. The recent move contradicts GM CEO Mary Barra's statement during an earnings call in January that the company was not planning layoffs amid cost-cutting strategies. Ford also said it would pay a 15-cent dividend in the third quarter. GM earned a record $14.5 billion for 2022, according to its CEO General Motors Co. has laid off 500 executive-level and salaried employees just a month after its In May, GM put its hiring plans to add 3,000 white-collar workers on hold for this year. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. A "significant" portion of the cuts will be in Michigan, Ford spokesman Mark Truby said. The average GM stock price target implies about 38% upside potential. GM's full-year 2022 revenue came in at $156.7 billion, with net income attributable to stockholders of $9.9 billion and adjusted earnings before interest and tax at a record $14.5 billion. GM Layoffs: General Motors to Cut 14,000+ Jobs Source: Shutterstock According to General Motors (NYSE: GM) it is planning to lay off 15% of its salaried and We want to hear from you. GM notes that the major changes to its plants structure and employee headcount has to do with the preference from customers. Electronic Arts, which is considered as one of the leading American Video Game Company around the world plans to cut 350 of its employees in the marketing, publishing, and other areas which includes closing offices in Japan and Russia (Schreier, 2019). All Rights Reserved. 2022. GM is currently investing billions in electric vehicles after its Chevrolet Bolt EV and Bolt EUV saw record sales last year. DETROIT General Motors handily beat Wall Street's top- and bottom-line expectations for the fourth quarter, while forecasting another solid year of results in 2023. Those results would be below 2022 earnings, but above average analyst forecasts compiled by Refinitv that called for EPS of $5.73 this year. Get browser notifications for breaking news, live events, and exclusive reporting. I believe it is completely ok for a company trying to adapt to the changing market conditions and planning to produce vehicles that are preferred by the customers considering the long term sustainability of the company. All in all, GM is planning to cut more than 14,000 jobs with the recent round of GM layoffs. The decision by GM comes in response to similar actions taken by other significant automakers, such as Ford Motor and Stellantis, to cut expenses and streamline their operations. All rights reserved. Copyright 2023 InvestorPlace Media, LLC. Enter your email to receive our newsletter. The 500 job cuts make up less than 1% of GM's salaried workforce. Backtested performance is developed with the benefit of hindsight and has inherent limitations. "Today's action follows our most recent performance calibration and supports managing the attrition curve as part of our overall structural costs reduction effort," spokesman David Barnas said in a statement Tuesday. Also, the tariff that has been imposed by the US president on steel and aluminum is costing automakers in America around the extra cost of billions of dollars which has created a big market shift. The president promises that there will be auto jobs coming to the people around the places like Ohio where the massive layoffs by General Motors are taking WebHome. Its adjusted profit margin was 9.2%, down 2.1 percentage points compared with the previous year. 2023 CNBC LLC. Ford Motor earlier this month confirmed it would cut 3,800 jobs in Europe over the next three years to adopt a "leaner" structure as it focuses on electric vehicle production. Copyright IBTimes 2023. The company has been moving to expand its revenue sources with ventures outside of selling automobiles. That vehicle is expected to be followed by an electric Chevrolet Silverado work truck by midyear and electric versions of the Chevrolet Blazer and Equinox during the second half of 2023. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Until recently, the automotive industrywas largelyunaffectedby job cuts that had plagued the technology sector in recent quarters. TipRanks is a comprehensive research tool that helps investors make better, data-driven investment decisions. CEO Mary Barra assured Wall Streetthat the company is taking cost-cutting measures, such as dialing back on new hires,and is prepared to do more if needed. General Motors had about 86,000 hourly employees and nearly 81,000 salaried employees as of the end of 2022. Hundreds of job cuts indicate a very small percentage of the overall headcount. Not only the workers but also the ancillary units around the plant are affected by the strategic decision of layoffs by the company. Up to half of those savings are expected this year, he said. According to the Bureau of Labor Statistics, the number of people employed by motor vehicle and parts manufacturers declined by 3,500 in January. The amount of customers buying cars in the U.S. is down, which has the company shifting focus toward other products. As per my analysis, the Company is not obliged to prioritize the ancillary units that are affected by the layoffs and plant shutdowns than their own Company. All Rights Reserved. The post GM Layoffs: General Motors to Cut 14,000+ Jobs appeared first on InvestorPlace. GM and other manufacturers' cost-cutting initiatives aim to improve their competitiveness and financial performance in light of difficult market conditions. The hires don't hurt the bottom line, and they help to achieve the GM's targets, said Jessika Lora, GM''s director of global innovation. The company aims to save $2 billion over the next two years by reducing overhead and corporate expenses, according to a Detroit News report. 1125 N. Charles St, Baltimore, MD 21201. Overview Of General Motors And Toyota. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. They will be across various functions of the company, said the person, who asked not to be named because the plans are not public. (2018, November). Global Business and Financial News, Stock Quotes, and Market Data and Analysis. GM announces sweeping layoffs; spares Flint. The company reiterated in an emailed statement that the cuts are a result of performance, saying they will assist in "managing the attrition curve as part of our overall structural costs reduction effort.". The area around the plant is designed in such a way that the shutting down of the GM plant will affect the entire city. Scuba Certification; Private Scuba Lessons; Scuba Refresher for Certified Divers; Try Scuba Diving; Enriched Air Diver (Nitrox) In my opinion, the decision taken by General Motors regarding restructuring and shift toward the future-forward technology of electric cars and automated self-driving cars is right. GM layoff announcement sparks outrage and stock increase. "We think the underlying business is going to be pretty consistent with what we saw last year, and I think that's a slightly more bullish statement than where most of the market is," he said. 2022 CBS Broadcasting Inc. All Rights Reserved. He is ranked in the top 15% of stock pickers on TipRanks. WebGeneral Motors said it is cutting salaried and executive staff after saying a month ago that it wasn't planning layoffs. This material may not be published, broadcast, rewritten, or redistributed. In her letter to employees, GM Chief People Officer Arden Hoffman emphasised the need for a "culture shift" to hold the company accountable for achieving higher operating efficiency. Sorry, you have Javascript Disabled! (2019, March 26). Got a confidential news tip? She clarified that the company aims to The GM layoffs will also see the automobile manufacturer shutting down two other plants that are located outside of North America. All rights reserved. All Rights Reserved. "To deliver on our commitments and win in this industry, we must have a winning team and hold ourselves accountable for performing at a high level; by focusing on our efficiency, we are preparing for a more competitive environment," Barnas said. But more important to note is the fact that GM is in a period of transition. It expects adjusted earnings before interest and taxes of $10.5 billion to $12.5 billion and adjusted earnings per share of between $6 and $7. Can I Be Laid Off While On Workers Compensation? Ford reported second-quarter adjusted earnings of $3.7billion more than triple that of the same period a year ago,when the company had a gain of $1.1billion. The strong report suggests GM is hanging onto record, or near-record, results even as the U.S. automotive industry begins to normalize after several years of record-low inventories and resilient consumer demand. This includes the following plants. She said GM has been "proactively managing our cost structure all along." Sign up for free newsletters and get more CNBC delivered to your inbox, Get this delivered to your inbox, and more info about our products and services., 2023 CNBC LLC. Following recent price cuts for Tesla vehicles and Ford's Mustang Mach-E crossover, Jacobson said GM feels its EVs "are well positioned" with pricing. About Us; Staff; Camps; Scuba. GM beats expectations on top and bottom line. We continue to shift resources to EVs with around 75% of our product specific capital dedicated to EVs and AVs [autonomous vehicles], said CFO Paul Jacobson during the Q4 earnings call. All Rights Reserved. Mary Barra, in a letter to shareholders, described. The Detroit automaker is looking for software, computer, mechanical and electrical engineers, as well as battery engineers, cyber security experts, and others. On Monday, crosstown rival Ford Motor Co. said it was cutting 3,000 jobs across Canada, the U.S. and India. On March 2, This AI "Roadmap" Goes Live. Read more onGeneral Motorsand sign up for ourautos newsletter. It's working with partners to develop hydrogen fuel cell locomotives, aircraft and generators. Yes, I agree that there are certain kinds of obligations the Company needs to fulfill for its employees. General Motors expects its 2023 capital expenditure in the range of $11 billion to $13 billion. Both General Motors and Ford are investing billions in expanding their presence in the lucrative EV space. Warren Transmission Operations in Warren, Michigan. It's also partnering with Honda on battery technology and vehicle platforms. At the end of last year, GM employed about 86,000 hourly workers and 81,000 salaried employees worldwide. GM Layoffs: General Motors to Cut 14,000+ Jobs, UPDATE 1-Biden says other companies will slash insulin prices after Eli Lilly move, Japan corporate capex rises despite weaker profits, UPDATE 1-Alphabet's CapitalG appoints insider Laela Sturdy as managing partner, Asia Stocks Edge Higher in Face of Elevated Yields: Markets Wrap, Salesforce CEO Marc Benioff: 'We have hit the hyper-space button'. For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate., Invest Like a Pro with Unique Data & Simplifed Tools, GM should be bought, not sold, on truck production cut, says BofA, GM to halt Indiana truck plant output for two weeks, Reuters says, General Motors subsidiary, Tawazun Council sign cooperation agreement. At least 4,000 expected to lose jobs this material may not be published, broadcast rewritten. 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