Looks like General Motors is re-trenching. Even as the rest of the economy is still going gangbusters, GM is preparing to layoff 14,000 workers and close five plants.
According to the Daily News:
More than 8,000 white-collar workers will either take buyouts or be laid off, and 6,000 factory workers could lose their jobs in the U.S. and Canada.
The company is also putting five plants up for possible closure in addition to dropping 15% of its workforce.
Unfortunately, GM seems to be headed in a stupid direction by growing its electric vehicle lines.
“The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future,” CEO Mary Barra said. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”
Amusingly, even as GM said it plans to waste its time on a foolish dive further into liberal ideal of electric vehicles (that no one will buy), Democrats used GM’s announcement to attack both the car maker and Donald Trump both.
Rep. Tim Ryan (D-Ohio) said in a statement that GM has “turned its back on us.” One of the five plants that will be closed is located in Warren, Ohio.
Additionally, Ryan ripped President Trump, saying he “has been asleep at the switch and owes this community an explanation.”
“We tried to get his attention on this issue two years ago. He promised us that his massive corporate tax cut would lead to dramatic reinvestments in our communities,” Ryan tweeted.
“That clearly is not happening. The Valley has been yearning for the Trump Administration to come here, roll up their sleeves and help us fight for this recovery. What we’ve gotten instead are broken promises and petty tweets.”
“Asleep at the switch”? We have the best economy we’ve had in decades. How sleepy did Ryan think Obama was for eight years?
Anyway, GM intends to fire thousands and then invest in vehicles no one wants.
Follow Warner Todd Huston on Twitter @warnerthuston.