Just heard an email went out regarding voluntary separation. If they don't hit their number with voluntary, they'll make it with layoffs. No way to save $2B in two years without cutting jobs.
Someone please remind me what Mary Barra said about no layoffs?
If you quit (take the VSP), you don't get unemployment. But the VSP is way more money, so it's the better deal.
If you get laid off (ISP) and get a package, you can collect unemployment after the severance is used up.
So if you get 2 months salary as severance, you can apply in 2 months.
GM is the only place that thinks managing attrition means paying people to quit after a massive hiring binge.
If you get laid off can you file unemployment even if you get 3 months of pay?
You typically don't get a package if you're fired for cause.
And not all companies will give you a package even for a real layoff.
Just like giving 2 weeks notice if you quit, severance packages from a company are just a tradition, not a law.
And not everyone follows tradition.
Presuming you had been with company for at least 1 full year, aren't you entitled to severance package if fired? Whether for cause, performance etc??
The original 500 were fired for poor performance.
Fired for cause.
I expect they got no severance.
what about the 500 employees been cut in end of feb? will they get the package considering the VSP been announced after a week? it is not fair for these 500 people if they leave them out
If you lay people off then backfill, you're not going to save the 2 billion.
No backfilling will occur.
If you take the VSP you can't claim unemployment because you're quitting, not getting laid off.
If you wait and lose the ISP lottery that will follow, you can claim unemployment and make a couple of hundred a week for 6 months, but the company will probably give you a much less generous severance package.
If you add everything up, the VSP will probably give you more money.
But no one thinks theyll get laid off, so too few people will take the VSP and the ISP will have to include more people to get to their 2 billion target.
There is no more quiet quitting since gm’s now performance based just ask the 500 that were recently fired. They are not backfilling the positions of people that leave. Ppl might move around but no more headcount will be added. So the teams that have a lot of coworkers that take the VSP, they will be doing a lot more work without the pay.
Now that I've been asked to seriously consider quitting so I could 'consider another career or take up a hobby', I'm not very motivated to do any work. Anyone else?
Was this their point? So we could be marked down as not giving 100%?
This is going to move the masses into 'quiet quitting' on another level and will most assuredly backfire on GM. Just my 2 cents on this snowy Friday morning.
They can pay us, tell us what to believe and say and try to motivate us with empty platitudes (wellness, inclusiveness, one team) but they can't make us care any more. There's only so many times someone can tell you that you aren't valued or wanted before you clock out mentally for good. I hope they remember this as they unleash wave 3: involuntary separations some time in April or early May. We are like abused spouses. I hope they aren't expecting any passion, dedication, innovation or loyalty as they threaten and abuse us.
No you can’t take unemployment.
The post abt the 500 being nothing, that was last week’s news. Keep up.
Stellantis looks like the winner out of the Detroit 3. Already running lean, Smart CEO in Tavares and Mark Stewart figured it out during covid not hiring but firing during that time. 18 billion profit on 13 percent Margin while all employees are still mostly WFH. Why would GM hire so many people?
500 is nothing. I suspect there's something much larger coming. Coming recession, new car prices are unobtainum for many people, financing new cars is getting more expensive. Feels like another 2019 is coming may be half the size (which still is pretty staggering).
What is the deal with unused vacation days if you take the vsp?
The auto cycle is 100 years old. Make money. Over hire. Invest in "flying cars". Dont sell enough pickup trucks. Voluntary actions. Involuntary action. Saw it a child. Lived it many times as an adult. And thankfully can watch this one from sideline
I hope Mary would be eligible to get the same offer (lol)!!
If someone takes the VSP can they still collect unemployment? anyone from the 2019 rounds know?
General Motors Company Stock: $37.98/share, down 4.48%. Gosh, what happened?
In January 2011 which was 18 months after the bankruptcy, it was $36/share.
Incidentally, Ford stock was $16/share in January 2011. Today it's $12/share.
The more things change, the more they stay the same.
The auto industry usually tanks hard before a recession.
You are here: X
Interest rates are here: 6.3% for prime, 10.8-21% for sub-prime borrowers
The average price for a new vehicle was $48,681 in November 2022.
How long do you think this party will last? 60 days?
"It's not that you are being negative, it's that you are making assumptions and getting it wrong."
Actually I'm making a conjecture, but whether or not I'm wrong is to be determined.
Interesting that they want to get rid of people who've been here longer than 5 years.
Still trying to get rid of older, more experienced people.
Managers almost never lay off managers, because they consider their jobs to be the most important in the company.
Worker bees are going to take the brunt of this.
If the SLT is smart (and they're not, lol), theyll tell everyone that the involuntary layoffs to follow the buyout will be much less generous than the buyout.
Like, a flat 2 weeks severance.
Then people can decide whether they want to gamble on surviving the layoffs or take the buyout...
This is a failure of leadership and strategy. they said the same thing in 2018/9. No vision at all as they were hiring like no tomorrow last few years. They are ways to remove cost permanently, but they would never do it. Hopefully they target executives and middle management instead of classified (level 7 or under) employees.
https://www.youtube.com/watch?v=s6gNo4-1r6k
" Flounder. You f*ced up!
You trusted us!"
"Don't mean to put too negative a spin on it but this statement tells me GM is looking outside the company for engineering skills and technology."
The statement was "investments in growth initiatives to accelerate near-term benefits". Where do you see in that statement anything about engineering skills or outsourcing?
The growth initiatives could be internal. Could be training. Could be equipment. Could be a new product portfolio. Could be exploring new markets. It's not that you are being negative, it's that you are making assumptions and getting it wrong.
Get your popcorn and pull up a seat cause here comes the real sh*t show.
I was there for the 2018-2019 version of this and can only imagine the people walking around on pins and needles starting today. When they don't get the numbers they are looking for then the "non-layoff" layoffs will commence.
Are they still espousing the "One Team" mantra?
From the WSJ, March 9, 2023:
"The auto maker said it also plans to focus investments in growth initiatives to accelerate near-term benefits while paring discretionary spending across the company and reducing salaried staff through attrition, primarily in the U.S."
Don't mean to put too negative a spin on it but this statement tells me GM is looking outside the company for engineering skills and technology.
@ukp+1lySrp8E not sure the mat checks out, but if it really is 32%, that makes sense, as a mass layoff is legally defined as being 33%
Source: https://www.bloomberglaw.com/external/document/X4VCFPQO000000/corporate-legal-departments-glossary-definitions-under-the-warn-
Having been through this in 2018/19, I received about $50k due to extra month pay/bonus and WARN notice violation which included pay for benefits/PTO, etc. I was tempted to take the initial offer, but glad I didn’t. It was a toxic culture and I’m glad I am now out of there.
GM told the media they expect a $1.5 billion write-down for the voluntary separations.
Simple math: $1.5 billion / X people = $100,000 average salary.
X = 15,000 people
"GM expects to take a pretax charge of up to $1.5 billion related to the buyouts, according to a public filing Thursday."
58,000 salaried U.S. workers
Source: https://www.cnbc.com/2023/03/09/gm-buyouts-us-salaried-workers.html
58,000 workers * 32% = 15,000 workers
A 32% reduction in salaried employees? I'd call that a VERY DEEP cut. But no layoffs. Right Mary?
Remaining workers who are already stressed out with work are about to get really uncomfortable. Can you see a 5 day mandatory office edict soon? How about pay cuts?
I expect threats, hostility and harsh micromanagement very soon.
Equity and inclusion for you and you and you and you.
At a time of record profits. Pretty wild days we are living in!
So...maybe there's a career change or a hobby you'd like to explore? SMH
Seeing reports the package will be 1 month pay for every year with the company plus cobra. For someone close to retirement, that could be good. For someone with half their career or more ahead of them, not so much.
I'm expecting their target is 8K to 12K headcount reduction.
All those people who threatened to quit over "return to the office" - what you are waiting for?
They are giving people 2 weeks to decide on a life-altering decision to quit their jobs. I don't expect it to attract too many people, which can only mean one thing...
After the mass layoff that is about 100% certain to happen soon, expect to be told salary will comply with 5 days in the office with mandatory unpaid overtime.
From record profits to "performance calibration" to doomsday cult in a week.
How attractive is the General Motors employee stock purchase program right now?
"General Motors, a culture to be proud of".
Do you feel like you are part of "one team" now?
I have worked in the auto industry for decades and have never seen this level of desperation from GM.
They are telling ALL SALARIED EMPLOYEES to go work somewhere else or get a hobby??!?!?!? WOW
I'm stunned!!!
How many are going to find 1 month pay for each year attractive?
The scale of layoffs after March is going to be epic.
GM overhired . Period. Start the layoffs. Enough watching IPL , wfh, shopping at costco , wfh, Up-north cabin meetings. Stop the madness.
25% paycut, everybody and their mama will come to work next monday.
Make that call HR.
Too many wolves hiding under WFH sheep clothes
FYI, announcements like this are timed so they know who the leakers are. Congratulations. 9:00am, 3/9/2023