General Motors acknowledges start of 4,000 layoffs of salaried workers

Company begins to cut 4,000 white-collar workers


WARREN, Mich. – General Motors has acknowledged the beginning of its plan to lay off 4,000 white-collar workers.

Company officials said Monday they are moving forward with the next chapter in the transformation plan by starting to lay off salaried workers.

GM started the process last November with voluntary layoffs and announced plant closures. It's caused quite a stir ever since, and Monday's cuts aren't likely to be better for the company's headlines.

For the next week, GM will be handing out pink slips at all of its North American facilities and even some overseas.

GM CEO Marry Barra released a statement in November saying she feels obliged to keep the company successful for many decades. They pointed to that statement today:

"The actions we are taking today continue our transformation to be highly agile, resilient and profitable while giving us the flexibility to invest in the future."

As part of its plan to cut $2.5 billion in costs, since November, GM has shed 2,300 white-collar employees with a dozen or more years of service and another 1,500 contractors. Now, 4,000 more will be laid off.

Employees with between one and 12 years of service will get their severance packages starting Monday, moving from facility to facility for the next two to three weeks, although most will happen this week, GM officials said.

Local 4 has learned the severance packages are similar to the ones offered in the voluntary round, which means six months of severance pay and health care for those with 12 years of service or more. It will be less for those with less service.

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