'Workforce restructuring' | GM to layoff more than 1,600 workers

GM to layoff more than 1,600 workers

General Motors has provided a reminder that US layoffs are not restricted to the tech sector, announcing a significant “workforce restructuring” plan at its Fairfax Assembly Plant in Kansas, shedding nearly 1,700 employees as it pivots towards electric vehicle production.

The firm issued a Worker Adjustment and Retraining Notification (WARN) detailing a two-phase layoff strategy. The first phase, commencing November 18, will see 686 full-time employees temporarily laid off and 250 temporary workers permanently released.

A second wave, scheduled for January 12, 2024, will place an additional 759 full-time staff on temporary layoff. The measures are linked to a planned production pause of the Cadillac XT4 luxury SUV at the facility.

The restructuring aligns with GM's $390 million investment in the plant, preparing it for future electric vehicle production. The company anticipates resuming full operations by mid-2025, with plans to manufacture both the Cadillac XT4 and Chevrolet Bolt EV on a single assembly line.

Second round of GM layoffs

The firm already lost more than 1,000 employees across various departments in August, as part of a global “operational streamlining” effort.

Analysts view the adjustments as reflective of the broader challenges faced by traditional automakers transitioning to electric vehicle production. GM's strategy involves significant investments in facility upgrades and new EV models, aiming to phase out gasoline-powered vehicles by 2035.

Despite the short-term job losses, GM emphasizes its long-term commitment to the Fairfax facility. The company views the plant as crucial to its future EV production plans, highlighting the complex balance between workforce management and technological advancement in the rapidly evolving automotive sector.

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