GM to Fire 1,600 US Workers This Week

General Motors continues its fight for survival and today announced that as part of its attempt to reduce workforce and save costs, around 1,600 workers will be fired this week. The plan was announced a few months ago and is especially aimed at helping the American car giant cope with US government's requirements who demand the automaker to reduce costs in every single possible area.

Furthermore, GM is aiming to reduce workforce by 14 percent worldwide, which means around 10,000 employees will be forced to leave the company by June 1. Overall, the company intends to lay off 37,000 hourly jobs by the end of the year, Autonews wrote today.

In a letter sent to the employees, Troy Clarke, GM North American President, said the company is analyzing every single aspect of the company and reducing workforce in the United States is nothing more than a way to remain in business and become competitive.

Here's the complete letter sent to employees on Monday (as published by Autonews):

Dear U.S. Employees,

In these unprecedented times, GM is reinventing every aspect of our business, including our organizational size and structure, to create a lean and agile company.

This week, most functions will be informing select employees that they will be separating from GM as part of the restructuring of our organization. In total, we expect about 1,600 employees to leave the company over the next few days. This will be a very trying time for the entire GM team, but especially for those employees directly impacted by these actions. Even for those employees staying, it will be difficult to see friends and co-workers leaving our company.

Our primary goal is to ensure that we treat those impacted with respect and dignity. To that end, our leadership team has received training to ensure we handle the notification process consistently. We value the many contributions of our impacted team members, and we are doing our utmost to provide them with resources and support throughout this process.

These are difficult actions. However, given the economic realities facing GM, these actions are necessary to help ensure the long-term viability of our company.

Thank you all for your ongoing support during these challenging times.

Troy Clarke
GM North America
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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