We translated GM’s “staffing transformation” press release into plain English
In a jargon-filled pressed release[1], General Motors today (Nov. 26) announced it is laying off 15% of its salaried workers and unallocating—err, closing—five plants in the US and Canada.
As CNN puts it, the automaker “is reinvesting money away from cars that once dominated America’s roadways and putting it into technology it believes will power its future.”
Or, as GM put it, it’s going to “strengthen its core business, capitalize on the future of personal mobility and drive significant cost efficiencies.”
The rest of the press release was similarly euphemistic. For clarity’s sake, we’ve made some edits to it.
General Motors is firing 15% of its salaried workersAccelerates TransformationDETROIT – General Motors (NYSE: GM) will close five North American plants and lay off 15% of its salaried employees.
accelerate its transformation for the future, building on the comprehensive strategy it laid out in 2015 to strengthen its core business, capitalize on the future of personal mobility and drive significant cost efficiencies.The company hopes this announcement will be drowned out by Cyber Monday sales and completely forgotten by Christmas.
Today, GM is continuing to take proactive steps to improve overall business performance including the reorganization of its global product development staffs, the realignment of its manufacturing capacity and a reduction of salaried workforce.These actions are expected toincrease annual adjusted automotive freeadd $6 billion to annual cash flow by theend of 2020on a run-rate basis.“The actions we are taking today
continue our transformation to be highly agile, resilient and profitablewill lower our costs, while giving us the flexibility to invest in the future,” said GM Chairman and CEO Mary Barra. “We recognize the need to change course after people stopped buying so many of our carsstay in front of changing market conditions and customer preferences to position our company for long-term success.”