This is not a stationary but rather a moving target, and these kinds of adjustments can be expected as a pace of transition accelerates.”Īs the Free Press first reported in February, GM cut several hundred jobs from its global salaried workforce of 81,000 then. “This will require cuts in the salaried and hourly workforces, the contracted workforce, and the disposing of obsolete production assets as result of the shift. “GM, like its other Detroit 3 competitors, struggles continually to realign its cost structure to shift from internal combustion to electrification,” Masters said. That could be significant as GM will start negotiating a new contract with the UAW for its hourly workforce this summer. Marick Masters, a business professor at Wayne State University, said more job cuts can be expected across GM’s workforce as the company funds its transition to all electric vehicles. It's a strained but common interpretation of 'forced cuts' or 'job loss. They think of it as just not renewing work that always was temporary. "When contractors are let go, companies don't think of it in terms of forcing them. "Contract workers are in an in-between land where they are not employees of the company, don't get company benefits, and can't count on long-term work," said Gordon. What does it mean to terminate contract workers?īusiness expert Erik Gordon of the University of Michigan's Ross School of Business said terminating contract employees is something many corporations do to save money. The expectation is the cuts will be permanent. “It’s part of normal operations and it contributes to that saving, but we’re not sharing a specific number.” It can be multiple different positions,” Raynal said. “They’re in the global product development area in all different areas. GM focuses on electric pickups Production of Chevrolet Bolt EVs to stop by end of 2023 ![]() Raynal could not specify the other locations where people were terminated because contract employees are spread out across the organization. GM spokeswoman Maria Raynal confirmed to the Detroit Free Press, part of the USA TODAY Network, on Monday that the automaker terminated “several hundred” contract workers Saturday, effective immediately. The cuts come nearly a month after 5,000 salaried employees agreed to a voluntary separation package that GM said would help it achieve close to 50% of its cost-cutting target this year alone and prevent further involuntary cuts. Hall and Anastasiia Riddle, USA TODAYĭETROIT − General Motors terminated "several hundred" contract employees who worked at its Global Technical Center in Warren, Michigan, and other locations this weekend in its bid to shave $2 billion from its budget by the end of next year.
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