If they are reducing workforce by 15%, number of director level positions cut is not even close to 15% of total directors. As usual the brunt will be at worker bee level. Levels 6 and 7 will take a blood bath. Manager levels will be fine since they are closer to directors whereas worker bees are far removed in the food chain.
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Back around BK when GM let a bunch of people go and “re-leveled” a number of us 8th levels to 7, they interviewed all of us to “decide” who would get to keep it (one of the six of us were in the running to stay 8). The one person who got to stay level 8 lost it only a couple months later.
This process is going to continue well past Monday or Tuesday and well through 2019. Likely it’s the new GM where there will this will be a regular thing. Not just once every ten years.
Demotions don’t save $ other than eliminating the company car if 8th to 7th. They keep salary at the same level so there is no future growth. It has more typically happened with director to 9th level.
15% reduction including 25% reduction at the Executive level (above 8th level)
I have also heard many 8th levels will be given a choice to be demoted to 7th levels. If they decline, they will be forced out (literally what happened during 2008 crisis
Warren Tech Center was closed on Friday. I'm sure director cuts will happen Monday.
Why do we still have an 8th level car program? Ford and FCA have lease programs, makes sense.
I heard they were targeting Level 8s. Makes sense as many of these employees have worked their way up, so the company can get rid of older employees without being accused of age discrimination. The cost savings would be greater, too, because these people have cars.
The management will continue to be reduced over the next couple of weeks. Individual contributors will likely be a big bang on Monday.