We want to hear from you. She said GM has been "proactively managing our cost structure all along." 2023 CNBC LLC. Wedbush Analyst Daniel Ives recently stated cost-cutting is part of this process, indicating that investors shouldnt be worried. 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 Now, the General Motors layoffs are looming and may lead to further uncertainty from investors, making it harder for the stock to rally in the short term. In that interview, Jacobson also said that GM is "not contemplating any layoffs, we don't have any plans to lay off workers" but it has identified $5 billion "of inflationary pressures year-over-year" that has forced GM to adjust some growth plan and to be disciplined with its fixed costs. Two Wall Street Legends will reveal their #1 recommendations and full "roadmap" for navigating the coming AI revolution. The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. GM expects some head count reduction due to attrition but the company is "not planning layoffs," Jacobson said. GM is planning to stop building vehicles with poor sales and which are not preferred by the customers. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The cuts affect about 500 positions, according to a person familiar with the plans, which were announced internally Tuesday. GM also announced Tuesday an equity investment of $650 millioninLithium Americas Corp. to develop a lithium mine in Nevada known as Thacker Pass. 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. This includes the following plants. Last year GM hired over 10,000 people worldwide, with one-third of them in software engineering jobs. GM feels they need to optimize themselves as per the change in market conditions and preferences of the customers in order to position themselves in the long-run. Its been a complicated month for GM stock, which has been trending downward for the past two weeks. That includes taking out "significant cost" by 2020 as GM transformed the company. General Motors Layoffs 2023: What to Know About the Latest GM Job Cuts, 5 Hypergrowth Stocks With 10X Potential in 2023, The Countdown to Destruction Has Already Begun for Exela Technologies Stock, Louis Navellier and the InvestorPlace Research Staff, AMC Stock: The Convergence Trade With a Massive Wrinkle, Cathie Wood Is Betting Big on These 5 AI Stocks, Housing Market Crash Alert: Mark Your Calendars for Feb. 28, RIVN Stock Price Predictions: The Case for Rivian Reaching $26. vehiclesfrom newer model cars, trucks, tractors and RVs to classic cars and exotics! GM forecast 2023 net automotive cash from operating activities to come in between $16 billion and $20 billion and sees automotive free cash flow of $5 billion to $7 billion. Notify me of follow-up comments by email. 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. It is considered that GM didnt build Oshawa rather Oshawa built General Motors. We are limiting our hiring to only the most strategically important roles and we will use attrition to help manage overall headcount, said Barra. General Motors (NYSE:GM) had previously been trying to hold out on job cuts. You can view a list of Rapid Response The company has a "work appropriately" policy that gives employees flexibility to work where they want, when the work permits. However, the company called these headcount reductions attrition and not layoffs. "I do want to be clear, though: We're not planning layoffs. I like our position, and I wouldn't trade it with anyone in our industry. Save my name, email, and website in this browser for the next time I comment. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. 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'. Copyright 2023 IBTimes LLC. Thats why I feel the company is not responsible for it. Certain assumptions have been made for modeling purposes and are unlikely to be realized. The post GM Layoffs: General Motors to Cut 14,000+ Jobs appeared first on InvestorPlace. Barra said last quarter that GM has "a foundation of strong earnings and cash flow, an investment-grade credit rating, historically low pension obligation and outstanding vehicles, services and pricing. GM's net income slipped last year, down by less than 1% from full-year 2021 to $9.9 billion, with a profit margin that was off 1.6 percentage points to 6.3%. It will be cutting around 500 executive level positions. A Division of NBCUniversal. Those results marked the high-end of the company's previously revised guidance. General Motors Announces Sweeping Layoffs for North American Workers, Personal Analysis of the decision taken by General Motors, Performance Appraisal at Bank of Kathmandu | Human Resource Management, Writers Block Overcoming Writers Block | Managerial Communication, Karmachari Sanchaya Kosh - | Employees Provident Fund Nepal, Key elements of Organizational Behavior - People, Structure ,Technology & External Environment | Organizational Behavior, Perceptual Errors -Types of Perceptual Error | Fundamentals of Organizational Behaviour, Types of Groups - Formal and Informal Group | Group Behavior and Team Development, Difference between Manufacturing and Service Operations | Operation Management, Maryland Warren Transmission Operation, Michigan. "Their hard work helped us deliver industry-leading initial quality and meet strong customer demand," Barra said. OBrient loves helping everyone understand the complexities of economics. GM layoff announcement sparks outrage and stock increase. The company is more focused on innovation which led it to shift towards electric cars and automated self-driving cars in the future. 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. Samuel OBrient has been covering financial markets and analyzing economic policy for three-plus years. The automaker halted work at Got a confidential news tip? Some of the best brands offered by General Motors are: With the turn in the 21st century, the world is growing in terms of advancement in technology and the concern for environmental protection seems to be mandatory for the automobile industry in order to sustain in the market. The given video in the CLA1 assignment talks about the strategic decision taken by the General Motors Company regarding cutting off its North American employees for the purpose of restructuring the organization. CBSNews. Yes, I agree that there are certain kinds of obligations the Company needs to fulfill for its employees. Further, the CEO called 2023 the company's "breakout year" since they expect to deliver $10.5 billion to $12.5 billion in profits for this year. The news regarding the strategic decision of employee layoff has been welcomed by the investors which led to the increase in the stock price of GM by 4.8% which was the highest closing price GM has had in about these three months (CBSNews, 2018). General Motors Co. (NYSE: GM), one of the St. Louis region's largest employers, on Tuesday reported a strong fourth quarter and full-year 2022 earnings that outperformed expectations. All rights reserved. GM CEO Mary Barra, in a letter to shareholders, described 2023 as a "breakout year" for the company's electric vehicle business, highlighting the introduction of more mainstream products like the Chevrolet Equinox EV as well as increases in production of its current models. Actual performance may differ significantly from backtested performance. General Motors reports 2022 growth, cost-savings plan for 2023. On March 2, This AI "Roadmap" Goes Live. Just over one month later, however, the auto giant has announced that it will be cutting roughly 500 salaried jobs, chiefly at the executive level. Electric Vehicles More Affordable Than Gas? The Detroit automaker is looking for software, computer, mechanical and electrical engineers, as well as battery engineers, cyber security experts, and others. 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. According to the Detroit News, a General Motors spokesperson said, Todays action follows our most recent performance calibration and supports managing the attrition curve as part of our overall structural costs reduction effort.. "That's why we're already taking proactive steps to manage costs and cash flows, including reducing some discretionary spending and limiting hiring to critical needs and positions that support growth. GM is to receive exclusive access to phase one of production, the automaker announced. Mary Barra, CEO, GM at the NYSE, November 17, 2022. GM will execute a $2 billion cost-cutting plan through the next two years, according to Jacobson. GM stock was up 5% as of Monday afternoon. "We continue to shift resources to EVs, with around 75% of our product-specific capital dedicated to EVs and AVs," GM CFO Paul Jacobson said on Jan. 31, as quoted by the same outlet. At the end of last year, GM employed about 86,000 hourly workers and 81,000 salaried employees worldwide. But Barra said there continues to be good demand for GM's big pickups and SUVs, which deliver fat profits. Shares have advanced 15% so far in 2023. The company has been moving to expand its revenue sources with ventures outside of selling automobiles. The company is focused on self-driving cars and all-electric vehicles which will not emit any gases that can be harmful to the environment and the people living in it. The cuts affect about 500 positions, according to a person familiar with the plans, which were announced internally Tuesday. Tracking site Layoffs.fyi predicts that in 2022, as the demand boom spurred by the pandemic quickly faded, technology companies laid off more than 150,000 workers. Read more onGeneral Motorsand sign up for ourautos newsletter. Job cuts: Many American firms have been downsizing to manage costs. All Rights Reserved. A Division of NBCUniversal. But GM is moving forward from a position of strength, Barra said. 2022 CBS Broadcasting Inc. All Rights Reserved. GM's EVs currently range from the mid-$20,000 Chevrolet Bolt models to the more than $100,000 Hummer vehicles. Please note all regulatory considerations regarding the presentation of fees must be taken into account. Mary Barra, CEO, GM at the NYSE, November 17, 2022. At the end of last year, GM employed about 86,000 hourly workers and 81,000 salaried employees worldwide. According to the Bureau of Labor Statistics, the number of people employed by motor vehicle and parts manufacturers declined by 3,500 in January. Barnas said that the company is focusing on accountability and efficiency this year. GM notes that the major changes to its plants structure and employee headcount has to do with the preference from customers. General Motors is focused on creating vehicles that are environmentally friendly from the supply chain to manufacturing with the introduction of vehicles that runs with biofuels, fuel-efficient vehicles, etc. For GM stock, which were announced internally Tuesday for the past weeks! Model cars, trucks, tractors and RVs to classic cars and automated self-driving cars in future! 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