Workers at GM plants in North America are facing pink slips as the holiday season dawns, as the company makes a troubling announcement about its future in the auto manufacturing business.
According to Fox Business, “General Motors said Monday it is cutting 15 percent of its salaried North American workforce, ending production of some slow-selling vehicles and halting production at several plants.”
It will cease production altogether in three facilities: Lordstown, Ohio, Hamtramck, Michigan, and Oshawa, Ontario. Other locations will see a reduction in the workforce, totaling 15% of its salaried employees. Some union workers will also be affected in the move.
The decision came on some bleak news about the giant auto manufacturer, and the company is scrambling to find ways to streamline its operations and reduce costs so it can remain competitive in the market.
GM plans to invest more of its capital in electric vehicles and autonomous cars in the wake of the severely decreasing demand for their vehicles and the resulting plunging sales in North America of its traditional products.
"Contributing to the cash savings of approximately $6 billion are cost reductions of $4.5 billion and a lower capital expenditure annual run rate of almost $1.5 billion," GM said in a statement.
"Actions are being taken to reduce salaried and salaried contract staff by 15 percent, which includes 25 percent fewer executives to streamline decision making," CEO Mary Barra said.
With the holidays coming, please pray that the families affected by this life-changing announcement can find a way to overcome the challenges and to find joy in the true meaning of Christmas.