Achieving $2 billion savings target without cuts

In an email to salaried employees Tuesday morning, CEO Mary Barra said the firings GM did in February and the buyout program offered last month, have provided about $1 billion in savings. GM has said it plans to cut $2 billion from its cost by the end of next year with 30% to 50% of it coming through steps taken this year.

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In the Tuesday memo, which was obtained by the Free Press, Barra wrote, "Through the VSP (voluntary separation program) we’ll have roughly 5,000 U.S. salaried employees and global executives who are able to retire early or pursue other interests. These results confirm that a company-wide Involuntary Separation Program is not a consideration at this point. As always, leaders will continue to have the flexibility to manage their organizations to drive high performance and impact."

(source: https://www.freep.com/story/money/cars/general-motors/2023/04/04/gm-buyouts-layoffs/70079763007/ )

I’m not convinced that GM will achieve $2 billion savings target without layoffs. What do you think?

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Switching from 2 ply to single ply in the bathrooms will save at least half of that, so no need for an ISP.

GM spokesman David Barnas said: "The steps we are taking will allow us to maintain momentum, remain agile and create a more competitive GM.”

GM sold 20,000 EVs in the last quarter. Tesla sold 420,000.
Telsa also cut the prices of their offerings and STILL have a significantly higher margin.
How on earth can GM match Tesla on a competitive level?
Cutting staff and programs will never achieve this!!!

Fear spreader… you failed to mention that she said program cuts and other cost cuts from marketing will contribute to the 1.5 billion. It’s not all about attrition and dismissals.

There’s a WARN notice for Warren…400 - MI site

"At this point"

5billion cost is probably a tax write-off.

So from the two articles, they're taking a 1.5 billion charge for VSP, but achieved 1 billion in savings?

So they're half a billion deeper in the hole?

Is the plan to lose money on every cost saving action but make it up in volume?

They've set a new precedent with the performance severances. They don't need layoffs anymore. Perpetual fear will be your motivator.

I thought GM was wanting 1.5B in VSP. The memo on shows 1B.

https://www.nasdaq.com/articles/gm-to-take-up-to-$1.5-bln-charge-on-voluntary-separation-program

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Achieving $2 billion savings target without cuts

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