GM's Massive Firings

The chief executive officer at General Motors has decided that her slow move into the essential electric vehicle (EV) market, and probably the coming recession, means she must batten down the hatches. The best way to save money at a manufacturing company is to fire people. She did so with great gusto. (These are the best-built and worst-built cars in America.)

GM will fire most of what it calls its “salaried workers” in the United States. That totals 58,000 people, and it could cost GM as much as $1.5 billion. The Voluntary Separation Program is nothing more than firing people GM might avoid “involuntary action.” In other words, take the buyouts and run.

The people who take the package will get one month of severance for every month they worked — capped at 12 months. Loyal long-time employees will take a financial beating.

It is hard to say how many people will leave GM due to this program, but it is certain to be well into the tens of thousands. Many of them will not find work soon. They can move from severance to unemployment benefits.

Barra did not lay herself off or even volunteer to work for $1.

The layoffs are a sign that GM was not prepared for the near-term future. It looks like Ford in that regard. The EV futures of both are in trouble. A recent Wall Street Journal headline said it best: “GM’s EV Push Stalls Amid Slow Rollouts for GMC Hummer, Cadillac Lyriq.” One dealer described customers as frustrated. That means they may turn to a Tesla, which is more attractive since it has been cutting prices.

GM wanted to be out front in the EV market. Instead, it is behind. Now, it must shed its fossil-fuel costs as fast as possible. That means tens of thousands of jobs.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.