GM Laying Off 4,000 Employees

Photo Credit: John Minchillo/AP

Layoffs are set to start today based on previous statements from the car manufacturer.

These layoffs have come as part of a sweeping 15% reduction in salaried, white collar positions that GM has in North America. The layoffs were originally announced last November, and GM is now also closing down four plants in the US, and one in Canada.

GM is currently doing what several other car-makers are: cutting staffing costs to save money to be invested in newer and/or better tech. These job cuts are a part of a plan which is expected to save GM $6 billion. The saved money will be spent on the “new generation” of cars, including self-driving cars, electric cars, and of course self-driving electric cars. The company is also trying to move forward with a ride-hailing service, so the company can start making money selling rides, not just cars.

These moves are predictable under the current state of affairs. The auto industry is changing, and many car-makers are already starting to adjust their outlooks for the future. Car ownership is expected to become less popular in many parts of the world, but ride-hailing and self-driving cars are trends that have barely even begun. Going forward, most ride-hailing services want to tackle the challenge of unprofitably with driver-less vehicles, an idea which is being pushed forward by the entirety of the tech community, but which is less well received by many. According to Gallup, driverless cars are a tough sell to Americans, who don’t trust them very much yet. A slight majority of Americans say they wouldn’t want to be in a driver-less car.

President Donald Trump has already criticized GM CEO Mary Barra on several occasions. GM is set to shut down facilities in several states, including a plant in Lordstown, Ohio, which Trump personally promised to save during the 2016 presidential campaign.

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