GM Offering Buyouts To More Than A Third Of Its NA Workforce, Layoffs Could Be Coming

General Motors delivered a treat to investors earlier today when it revealed a third quarter income of $2.5 (£1.9 / €2.2) billion thanks to strong sales of its trucks and crossovers.

GM is obviously pleased with the results and noted sales of pricey versions of the 2019 Chevrolet Silverado and GMC Sierra have “exceeded expectations.” While that’s certainly good news for the automaker, it didn’t stop the company from pulling a Halloween trick on its workforce.

As The Detroit News reports, GM is looking to cut costs and will do this by reducing their workforce. As part of this effort, the company has offered buyouts to 18,000 of its 50,000 employees in North America. That’s a huge number and it represents over a third of their workforce on the continent.

Employees will have until November 19th to decide if they want to accept the buyout and it appears the company could layoff employees if not enough people agree to take the severance package. There’s would word on how many employees could get the axe, but GM said it will evaluate the response to the buyouts before making any decisions.

The news comes right ahead of the holiday season and will likely cause a lot of concern for the company’s employees. That being said, it doesn’t appear GM is planning to make any immediate cuts to its workforce aside from the buyouts.

Getting back to the financials, GM delivered nearly 700,000 vehicles in the United States in the third quarter and the average transaction price climbed by approximately $800 (£626 / €707) to set a new third quarter record of more than $36,000 (£28,194 / €31,814). This is nearly $4,000 (£3,132 / €3,535) above the industry average, thanks in part to strong sales of trucks, crossovers and SUVs.

Speaking of the latter, sales of the soon to be replaced Chevrolet Tahoe, Suburban and GMC Yukon climbed approximately 12 percent year over year. The Chevrolet Colorado and GMC Canyon also posted the best third-quarter mid-size pickup truck sales since 2004.

  • LJ

    I don’t get it.

    • brn

      Yep. There’s a piece missing from the puzzle.

  • TheBelltower

    Shocking! Just shocking, that mediocre vehicles lead to a struggling company! Both GM and Ford should go check out Isuzu as a case study. It clearly illustrates how shortsightedness and lack of innovation quickly sinks a company. When GM went bankrupt and re-established as a new company less than a decade ago, I thought they were going to do great things. Instead, they remained just as stagnant as ever.

    • LJ

      That’s what happens when you reward failure with a government bailout… there’s no incentive to excel.

      • Thetruthísntalwayspopular

        Yer dat goveneeent takkin our taxes and leetiin in dem immagents.

        • LJ

          I’m an immigrant.

    • Thetruthísntalwayspopular

      Shocking! Another big mouth with no knowledge spouts off what they think is best. They aren’t mediocre vehicles. You literally have NO idea how much GM is investing into BEV and Autonomous tech and how insanely expensive that is.

      • TheBelltower

        Until the rubber hits the road, none of what you said matters. We’ve all seen how GM works. For several decades.

        • ksegg

          This plus a billion.

        • Thetruthísntalwayspopular

          The rubber has already hit the road so it’s clear you are already ignorant as F about that. They were among the first to introduce a full and affordable electric car with the bolt. It’s almost like you think that different people don’t work there now and it’s the same people that were there 40 years ago lol.

      • ksegg

        Faraday Future did the same thing.

        With ZERO results.

        Investing means nothing when there’s no viable product/result.

        • Thetruthísntalwayspopular

          There is though. The Bolt and the volt were just the start, so you don;t even know what you’re talking about. Do you think they are just going to make V8 trucks for the future?

          • ksegg

            So two less than stellar EV’s in a field now dominated with far better choices.

            Yeah, great progress there. It’s not like everyone else had a headstart either.

          • Thetruthísntalwayspopular

            The field is dominated with far better choices? Like what exactly? The leaf? You’re an idiot.

  • Maykel

    Pleased the investors huh employees be damned. Rich getting richer, poor getting poorer.

    • ksegg

      That’s always been the case though.

      It’s been going on for a thousand years, and will continue for a thousand more.

  • Iberian Rekluse

    …roll in the robots and drones.

  • Well that’s a no-brainer. Modern capitalist economics states that if you want to cut costs, you cut people. That hasn’t changed since Adam Smith.

  • Stigasawuswrecks

    Thank goodness those tax cuts helped create jobs.

  • MarketAndChurch

    i think their trying to lower their union workforce. or shift manufacturing to china.

  • charlotteharry57

    This is in reaction to many media outlets screaming after Mary proclaimed earlier this week that GM is a tech company and not a car company. With little to no regard for the present; only the future years down the road. Well, turns out, like I said, that GM has a slew of CURRENT problems that first need to be addressed and cutting workforce is one casualty. Some of the problems that need to be immediately addressed are:
    1. Obnoxious vehicle overpricing.
    2. Obnoxious vehicle undercontenting.
    3. Iffy vehicle quality overall.

  • john1168

    Are they laying off only labor or management (lower/middle mgmt.) as well?

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