Good news for the economy as GM has announced that they are laying off 1300 workers in Michigan due to the end of production of certain vehicles. GM, the largest US automaker, has been in the news recently due to its restructuring efforts in an effort to reduce costs and improve efficiency.
This announcement comes on the heels of several other recent changes GM has made. It recently announced plans to shift production away from sedan vehicles and toward its more successful pickup trucks and SUVs. The company also recently announced the sale of its Opel European auto brands.
The 1300 people affected by this layoff will come from GM’s Flint, Warren, Orion, Romulus, and Lansing Michigan plants. GM says that the layoffs are necessary due to the discontinuation of several car models in those plants. GM spokesman Jim Cain stated that the company is “committed to treating affected employees with dignity, respect, and fairness.”
It is estimated that the layoffs will save GM millions of dollars a year. The company has also promised to offer job training and re-employment assistance to those affected by the layoffs.
In an effort to offset the lost jobs, GM has committed to investing heavily in the self-driving and electrification platforms and has promised to hire thousands of workers in technology and software development. GM CEO Mary Barra even stated, “The future of transportation is all-electric, and GM is playing an important role in making that vision a reality.”
Despite this good news, the local Michigan economy will still face a hit in the form of job losses. It is estimated that over 20,000 jobs were lost due to GM’s restructuring. It will, however, open the door for new opportunities in the developing self-driving and electric-vehicle industry.
In summary, GM’s announcement of 1300 job losses in Michigan has been met with both negative and positive reactions. While the local economy is sure to take a hit from the lost jobs, the restructuring will also open up job opportunities for those skilled in the new technologies GM is investing heavily in.