GM wanted at least 7K workers to take a buyout; layoffs loom

General Motors hoped at least 7,000 white-collar workers would sign up by noon Monday for a buyout offer, but managers told employees last week that it was likely to fall short, raising the prospect of significant layoffs.

The number volunteering for the offer is likely be closer to 4,000 based on estimates by an actuary, some GM employees said managers told them.

That means 3,000 or more salaried workers in North America could be terminated starting in January if the automaker in fact opts for forced job cuts, which it has said it would consider if buyouts fell short.

That’s the message some GM managers gave salaried workers during department meetings held Thursday and Friday of last week, several employees who attended the meetings told the Free Press. The meetings were an 11th-hour attempt to help employees with 12 or more years at GM decide whether they want to take a voluntary buyout.

GM employees who talked to the Free Press did so on condition of anonymity because their jobs are at risk.

The meetings were presented as informational and GM managers told employees, “Nobody’s under pressure to sign up or fear they’ll be threatened with firing or termination if they don’t sign up,” said a former senior-level GM manager who spoke with several employees who attended the meetings.

“GM (leaders) haven’t decided what they’re going to do if there is a shortfall — if they don’t hit 7,000,” said the source. “They said they may start the process in mid-January for involuntary releases.”

A GM spokesman would not confirm that date or that GM would pursue involuntary cuts. He said he was not aware of any company-wide meetings last week. If there were meetings, they would have been staff-by-staff, he said. He also said he was not aware of any figures or targets the company has set or would share with workers.

GM has said it must trim costs amid the rising prices of raw materials and plateauing car sales. So on Oct. 31, GM CEO Mary Barra sent an email to all 50,000 salaried GM employees in North America saying the automaker is offering voluntary buyouts to the 17,700 salaried employees who have 12 years or more with GM. Most global executives are also eligible.

GM has said if it cannot achieve enough cost savings between the buyouts and other cost-cutting measures, it might consider involuntary job cuts after the first of the year.

One adviser who has been working with several GM employees and managers said the process of selecting the voluntary and involuntary job cuts will happen quickly.