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More than 5 employees adhere to the voluntary dismissal plan announced by General Motors (GM). Job cuts must continue to generate $1 billion in savings.
This Tuesday (4), General Motors (GM) announced that approximately 5 employees had adhered to the voluntary redundancy plan, as part of a cost-cutting initiative that Paul Jacobson, chief financial officer, says will save the automaker $1 billion annually.
General Motors aims to cut $2 billion in costs
O job cuts corresponds to 6% of the 81 professionals who do not work on GM's production line, and should allow the US automaker to avoid unfair dismissals, according to the CFO. The voluntary redundancy plan is also expected to represent about half of the company's broader goal of saving $2 billion annually.
A General Motors set a goal of cutting $2 billion in operating costs by the end of 2024, with 30% to 50% of the total expected to be achieved this year. Responding to the voluntary layoff plan will allow GM to reach the top of that goal in 2023, Jacobson said during a Bank of America conference.
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Mary Barra, CEO of GM, stated in an internal memo circulated on Monday (3) that the job cuts generated by laying off hundreds of workers through the program will allow the company to achieve about $1 billion of its $2 billion goal in cost cuts. The executive also points out that the automaker was not evaluating any unfair dismissal initiative at this time.
GM will reduce vehicle complexity
Jacobson pointed out that General Motors would allocate 75% of its capital expenditures per year to electric car projects and that it should profit from US government subsidies for the sector under the Inflation Reduction Act, thanks to its investments in batteries, electric vehicle assembly and raw materials in North America.
GM will further cut spending by reducing vehicle complexity, expanding the use of shared subsystems between gasoline and electric models, focusing its investments on expansion initiatives, with short-term benefits, as well as reducing expenses. across the enterprise, including marketing and travel. Shares of General Motors were down 2,64% around 13 pm in New York in trading on Wednesday.
GM and Volkswagen grant collective vacations
As GM and Volkswagen automakers In March of this year, they gave collective vacation periods to around 5 employees at their units in Taubaté and São José dos Campos, in the interior of São Paulo. Due to the global semiconductor crisis, the market is slowing down, and automakers in Brazil have announced withdrawals and a reduction in production between the months of March and April.
The stoppages also took place at factories of Hyundai, in Piracicaba (SP), of Stellantis, in Goiana (PE), as well as units of Mercedes-Benz, in São Bernardo do Campo. At General Motors, the measure impacted 3 employees at the company's unit in São José dos Campos (SP), around 80% of the production area. The return of collective vacations is scheduled for April 12th.
The company did not respond to questions from the media, but the Metallurgists Union of the municipality spoke out stating that the objective is also an inventory adjustment due to the acceleration of the market and the drop in sales. The Brazilian automotive industry is going through a new period of difficulties and has once again announced production stoppages at its units in Brazil.
