GM Making Big Cuts to Avoid Bankruptcy
General Motors Corp., trying to avoid a U.S.-backed bankruptcy on June 1, may close plants and scrap models as much as four years sooner than planned to lower its break-even point. According to Bloomberg, the cuts could mean GM would be profitable in a U.S. market with sales of as few as 10 million autos. The annual sales rate was 9.9 million in March, after GM said Feb. 17 its break-even target was at 11.5 million to 12 million.
The new CEO announced to employees via email Monday that it will cut about 1,600 salaried workers this week – which is part of a previously announced plan. These planned jobs cuts are expected to take place throughout this week. And while we’re sure employees are nervous about whether they get to stay or have to go, we’re still getting some insights from them as to what other quick actions can take place to hopefully keep the company afloat. Below are some suggestions that CEO Fritz Henderson can take into account as he weighs some tough decisions:
“Remove your level 8’s if they have been in their positions for more than 10 years!” –Engineer (Warren, MI)
“Look at the long term view of the company. In all my years with the company, everything was always looked at in the short term.” – Senior Manufacturing Engineer (Flint, MI)
“Decentralize if you want plants to compete against one another to see who is really the best!!! Plenty of downsizing of the “doers”, but not one manager downsized.” – Manufacturing Engineer (Detroit, MI)
“Move to an attractive location and reap the financial benefits (and cull the workforce).” – Senior Systems Analyst (location n/a)
“There is little trust between union and management, still. We must resolve the fact that we are partners, and we win and lose together.” – Quality Operator (Toledo, OH)
Currently the company garners a neutral (3.1) company rating according to employees (note due to CEO Fritz Henderson’s brief time in office to date, reviews on his job performance are limited). We’ll keep you posted on what employees continue to report, and how company as well as CEO ratings are impacted.
Work at GM? What do you suggest? What’s working at GM and what’s not?