GM offers buyouts to ‘majority’ of U.S. salaried workers
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Re: GM offers buyouts to ‘majority’ of U.S. salaried workers
#2> General Motors will offer voluntary buyouts to a “majority” of its 58,000 U.S. white-collar employees,
> The buyout offer comes after the Detroit automaker said last week it would terminate about 500 salaried positions globally.
How does that work? The only sensible explanations I currently see is that either there's some new technology that replaces _hundreds_ of people or that... they had _hundreds_ of people that weren't doing anything useful?
I find it difficult to reconcile. Am I missing something?
Re: GM offers buyouts to ‘majority’ of U.S. salaried workers
#3> General Motors will offer voluntary buyouts to a “majority” of its 58,000 U.S. white-collar employees, > The buyout offer comes after the Detroit automaker said last week it would terminate about 500 salaried positions globally. How does that work? The only sensible explanations I currently see is that either there's some new technology that replaces _hundreds_ of people or that... they had _hundreds_ of people tha…
The thing you are missing is that managing large organizations of people is hard, and while you can reduce it to a spreadsheet it's a little rude to do that.
Anyway, that GM is offering buyouts means they think the recession that has been on the horizon for N number of months is finally here.
Re: GM offers buyouts to ‘majority’ of U.S. salaried workers
#4> General Motors will offer voluntary buyouts to a “majority” of its 58,000 U.S. white-collar employees, > The buyout offer comes after the Detroit automaker said last week it would terminate about 500 salaried positions globally. How does that work? The only sensible explanations I currently see is that either there's some new technology that replaces _hundreds_ of people or that... they had _hundreds_ of people tha…
Rapidly rising interest rates have hit payment sensitive car loans first (since they are shorter than housing and the collateral is harder to collect) and there was already a collapsing COVID bubble in prices due to supply chain disruptions.
They likely won't sell as many cars at relatively high margins over the next few years as they were planning on so they're looking to cut costs.
Re: GM offers buyouts to ‘majority’ of U.S. salaried workers
#5> General Motors will offer voluntary buyouts to a “majority” of its 58,000 U.S. white-collar employees, > The buyout offer comes after the Detroit automaker said last week it would terminate about 500 salaried positions globally. How does that work? The only sensible explanations I currently see is that either there's some new technology that replaces _hundreds_ of people or that... they had _hundreds_ of people tha…
The thing you are missing is that managing large organizations of people is hard, and while you can reduce it to a spreadsheet it's a little rude to do that. Anyway, that GM is offering buyouts means they think the recession that has been on the horizon for N number of months is finally here.
> managing large organizations of people is hard
That did spark a thought: They are set up for "producing, selling and servicing" X vehicles a year, but the market shrunk and the best they can hope for now is a 1/100 of X... Thus, they don't need as many people. Or in other words "downsizing to match the reality".
So far I like this explanation the most.
Re: GM offers buyouts to ‘majority’ of U.S. salaried workers
#6> General Motors will offer voluntary buyouts to a “majority” of its 58,000 U.S. white-collar employees, > The buyout offer comes after the Detroit automaker said last week it would terminate about 500 salaried positions globally. How does that work? The only sensible explanations I currently see is that either there's some new technology that replaces _hundreds_ of people or that... they had _hundreds_ of people tha…
Well, some percentage of people won't accept the buyout. It's not as if it's just free money -- it's free money for the stress and anxiety associated with being jobless. I'm sure they have a good idea of the number of people that they project will leave based on this, and they can always counteroffer if it turns out that more people than they expect will quit. The upshot to this over layoffs is that people can self-select. If 10-20% leave that's probably well within expectations.
Re: GM offers buyouts to ‘majority’ of U.S. salaried workers
#7Maybe I miss the point, but why wouldn’t the ones that easily find a job (or maybe even have a next job at hand) take the payout for extra money while the ones that desperately don’t do any work or are not performing would stay? Wouldn’t this result in the wrong outcome?
Re: GM offers buyouts to ‘majority’ of U.S. salaried workers
#8> General Motors will offer voluntary buyouts to a “majority” of its 58,000 U.S. white-collar employees, > The buyout offer comes after the Detroit automaker said last week it would terminate about 500 salaried positions globally. How does that work? The only sensible explanations I currently see is that either there's some new technology that replaces _hundreds_ of people or that... they had _hundreds_ of people tha…
If a car company needs to cut costs they've got a variety of options.
They can trim the product line-up - Wikipedia tells me Chevrolet alone has a product lineup of 10 cars, 12 crossovers/SUVs, 5 vans, 5 trucks, and 3 commercial trucks.
Or they can reduce the number of marques they operate (Chevrolet is just one of seven brands)
Or they can stretch out product refreshes. Maybe SUV #8 only needs a 'facelift', rather than a new 'generation'
They can also cut long-term investment in products they think don't have a long-term future. Would you invest in a new factory for casting engine blocks, when everyone knows EVs are the future? If you're flush with cash you might bet on both horses, but if you need to tighten your belt you might not.
I'd wager that, while the 'majority' of employees are offered the buyout, the EV folks probably aren't among them.
Re: GM offers buyouts to ‘majority’ of U.S. salaried workers
#9I think if you were a valuable employee and didn't get a buyout offer but were hoping to leave this would be a major downer.
Re: GM offers buyouts to ‘majority’ of U.S. salaried workers
#10Maybe I miss the point, but why wouldn’t the ones that easily find a job (or maybe even have a next job at hand) take the payout for extra money while the ones that desperately don’t do any work or are not performing would stay? Wouldn’t this result in the wrong outcome?
Yes but they are only thinking about cutting costs. If company know how is cut as collateral damage, they couldn't care less.
It's another round of Finance vs Industry.