It seems management is looking for 15000 employees to volunteer. Am I correct? or am way off! Let's say average salary is 100k . $1.5 billion divide by $100k will equal 15000 employees. What you guys think?
15 replies (most recent on top)
Post from TheLayoff.com
I ticked a couple of diversity boxes and still was let go in 2019. I’m sure because of age and salary. It sucks as those who strongly contributed to GM for decades are let go. I received a major award before I was downsized.
Do you sleep with a we-pon under your pillow?
Here we go again. 4 years since the 2019 bloodletting. You should learn from history that WOKE GM was in the process of an aggressive new hire frenzy to bring in the New and Purge out the older employees. I hope WOKE Motors gets their a-s sued.
GM will not spend 1.6B in severance packages because very few people are going to accept those packages.
And they know that. It’s all their game. They will do involuntary mass layoffs and they won’t spend any $.
Most likely they will layoff the new hire with less than 3 years with the company so they don’t pay out the 401k matching. In the end this would be a cost save for GM. If they were serious about giving packages, they would have offered it to everyone and I can guarantee that they would have met their 15k people goal. The old seniors that I work with have nothing to work on so why would they take the package? Work is fun for them because they get bored at home.
"it is not fair for these 500 people if they leave them out"
Fair? They were fired for poor performance. Poor performers aren't rewarded at the same level...
The higher pay goes to good performers who VOLUNTARILY leave.
GM has already said that the $1.5 billion is going to cover the separations and that the $1.5 is part of the $2 billion. The $3.5 billion number is nonsense.
READ THIS ---> "The largest U.S. automaker in January disclosed a $2 billion cost cut target, including reducing employment through attrition."
https://www.msn.com/en-us/money/companies/gm-offers-salaried-employee-buyouts-will-take-up-to-1-5-billion-charge/ar-AA18qQ5S
That $1.5 billion is an estimate based on expected attrition payouts. If fewer people take the VSP offer than expected, expect that money to cover the INVOLUNTARY separations, which are very likely to be much lower payouts.
Given how many are unable to understand these simple concepts, it should be obvious to all why we let people go last week. Wow.
They said they'll pay 1.5 billion in layoff costs, but want to end up saving 2 billion. So don't they really need to save 3.5 billion to net a 2 billion savings?
That's a lot more people who have to be let go to cover layoff costs but still save 2 billion.
But won't more layoffs increase layoff costs?
Not if people are let go for poor performance, for cause, and receive no severance.
There's a reason they plan to increase reviews to 4 times a year.
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
You have to think of these numbers like an executive. They're made up. All the money going in and out in so many directions and the fact that these people can't predict the future means that they can only guess and can't be proven wrong. There really is no way to show whether or not this actually worked so the initiative is the real win, not whether or not there was any positive change. Haven't you ever heard of OpEx?
I thought it was $2 billion savings with $1.5 billion spent for voluntary severances which would mean $3.5 billion would need to be saved.
"First thing that I ask a new client is, "Have you been saving up for a rainy day? Guess what? It's raining!".
To anyone reassuring themselves that the number is close to 5,000:
If it's 5,000 or 10,000, it's just the first wave of layoffs.
More program cuts, benefit cuts, pay cuts and JOB cuts will follow. And if there's a trade war with "C", there's no GM.
If you haven't paid off your debts and saved some cash right now, it's all immaterial. The bank runs have started. An economic collapse has begun. If you stay, you're in he-l. If you are ousted, you are in he-l. Either way... buckle up cause you're F'ed. Get in your best work clothes on Monday, smile at your coworkers. Roll up your sleeves. Enjoy it while you can.
Don't forget to down vote this because it's medicine you need but medicine you hate.
Also remember that many of the "know it all" hot shot people in your life who put on a dog and pony show with their McMansions and their loaded luxury vehicles are knee-deep in debt. They'll end up divorced and pitiful when this cr-p show soon enough. If that's you, you know what's coming. I can't stress enough how much bad energy is going to come your way on Monday morning. This thing is bigger than GM.
GM said we need to cut $2B in cost over the next two years. GM also said they expect the CHARGE (not the savings) for the VSPs to be up to $1.5B. They did not say that of the $2B needed in cost savings, that $1.5B of it will come from cutting employees (although, that could be true).
The $1.5B potential charge for the VSPs also includes packages for executives. Guessing that 1/3 of the $1.5B goes toward exec packages, that leaves $1.0B. Then conservatively assuming an average $150-200k cost of the VSP per non-exec person (up through level 9) equates to ~5000-6500 non-execs that GM to take the VSP.
I hope someone from management can confirm the numbers. So far we are guessing 5000 or 10000 or 15000 employees. I like the 5000 guess though. Sounds more reasonable since they wanted cost saving for 2 year span.
If you consider 150k/y average then 1.5 bill should be divided by 2 (cost saving for 2 years) then it will be around 5000 employees.
The average employee's cost to the company is probably more like $150k per employee when accounting for benefits/bonuses. So, using your $1.5 billion cost reduction, that would be more like 10,000 employees, assuming employment comprises the majority of the projected $2 billion cost reduction.