Just a day after we heard that McDonald’s is closing its U.S. offices to lay off workers, we hear yet another big company doing some firing. GM has just announced that approximately 5,000 people on salary will be offered buyouts to avoid the company’s laying off workers.
The 5,000 white-collar employees being laid off is sufficient to prevent layoffs at this time, GM reported. “The steps we are taking will allow us to maintain momentum, remain agile, and create a more competitive GM,” the company said in a statement. GM’s statement didn’t rule out future layoffs, stating that “involuntary separations are not a consideration at this point.”
According to GM’s announcement on Tuesday, the offers will result in cost savings of around $1 billion annually, or roughly half of the $2 billion it hopes to eliminate by the end of 2024. There are currently roughly 58,000 salaried employees working for the corporation in the United States.
The auto industry is in the midst of a switch from internal combustion to electric vehicles, so the timing of the buyouts is unpredictable. By 2035, GM wants to offer solely electrified passenger cars.
When people are off it’s not just them that suffer, it’s the entire economy does when massive layoffs occur from big companies. They don’t contribute as much to the economy as their purchasing power goes down. This trickles down to the small business owner not just big box stores. People will watch their purse strings especially when we are facing high inflation.
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