evok

Black Tuesday

205 posts in this topic

It appears the proverbial "it" will hit the fan tomorrow morning, young and old a like at all levels of the org chart will be told to leave.

Select GM 8th level and above managers will be shown the door.

Black Tuesday is designed to shake things up at General Motors.

I am lead to believe that app. 2,700 employees will be let go thougout the organization, including managers this time.

This is not a random firing. Every employee has a number assigned to them.

A lot of this will be kept quiet for fear of potential law suits as a result of GM's actions.

Edited by evok

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Very interesting... Will this go unnoticed by Union members/leaders? Or will this bloodletting appease them?

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This is not a random firing.  Every employee has a number assigned to them.

Like a ranking? Assigned by whom?

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I'm on pins and needles. Its very tense around here. People are still trying to be positive but there is that air of cautiousness and fright around, not good! I hope I'm still here because I really don't have a game plan if they say 'see ya' to me personally. Wish me luck!

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Guest Josh

You will still receive pay plus health benefits for up to 14 months if I remember right.

Not to mention, RJB, I will be at the bar right across from the Tech Center tomorrow where GM employees from the Tech Center hang out if you want to meet up or chat and what not, PM me your # or I'll PM you mine if you want me to just let me know via PM.

The "numbering system" as I've been told has been systematic. Meaning, GM knows who they want to get rid of, and this is just the time to do it.

I said it late last week when somebody asked why Salaried weren't offered a buy-out. It's simple, they can walk in, say "thanks for your work but we don't need you anymore" and *POOF* you're gone.

It's sad.

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Chin up guys. For every door that closes, another opens. Most of us are rooting for GM to find its footing and get back on track. Let's hope this is the worst of it and things will only get better from here.

Good luck!

Very sad is all I can say.. :(

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I said it late last week when somebody asked why Salaried weren't offered a buy-out. It's simple, they can walk in, say "thanks for your work but we don't need you anymore" and *POOF* you're gone.

It's sad.

Happens all the time in corporate America...though, in my experience, it's more common for companies to do their layoffs on Fridays. When I worked at MCI/Worldcom, the would always do it on the Friday a week or so before Christmas. People that were staying went to a meeting while an 'Angel of Death' (manager from a different department) wandered around informing the soon-to-be laid off...

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Not to diminish the affect this has on people lives, but GM has been offering buyouts, incentive packages and laying off contractors for 6 years now. In that time period, GM has reduced their salary and contracted staff as GM consolodated operations by about 20k people using a conservatve estimate. The real number is probably closer to 30k.

This time around it was explained to me that employees were rated over the past year and categorized into bins as to when they would be let go. This is not something recent but has been going on.

GM first had to reduce their contract burden, before targeting their direct staff because of potential legal action if the direct staff was targeted. Though that thread still looms, GM is now targeting under performing and non-essential direct staff as well as managers.

I assure you there is still a lot of dead wood at GM. My hope is that GM targets that dead wood.

Strategically targeting mid-level managers should send a needed wake up call to the organization. This is needed. There still is a disconnect between upper management and the front line troops. Some of the stories I hears are appalling.

Whatever actually transpires and the outcome it is happening as I type this.

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Will this make the news?

Straight from MSN home page...

GM to Lay Off Several Hundred Employees

DETROIT (AP) - General Motors Corp., pummeled by falling U.S. sales and billions in losses, said Tuesday it is laying off hundreds of U.S. salaried workers as part of a plan to bring its North American operations back to profitability.

GM spokesman Robert Herta said he couldn't give an exact figure, but said the cuts involve fewer than 500 workers at 30 locations across the United States, including factories and engineering centers.

A cut of just under 500 jobs would represent about 1.3 percent of GM's U.S. salaried work force of 36,000. The world's biggest automaker has said it plans to cut 7 percent of its salaried work force this year, so more cuts are on the way.

GM shares rose 20 cents to $23.13 in morning trading on the New York Stock Exchange.

Dave Kepsel, an engineering manager who spent 26 1/2 years at GM, was among those laid off Tuesday.

"I was told today I no longer have a job with GM," said Kepsel, a 52-year-old from Lake Orion who works at GM's massive technical center in the Detroit suburb of Warren.

Kepsel said he wasn't surprised by the layoffs and thought they might have come sooner because of GM's struggles.

"It's one of those things. It's part of doing business. I don't have any hard feelings," he said.

Kepsel drove away in a Chevrolet Silverado, a company vehicle he'll be allowed to keep for 30 days.

"At least they offered me that and didn't make me walk home or take a taxi," Kepsel said.

Detroit-based GM announced a restructuring plan last fall in the face of mounting losses. Under the plan, GM wants to cut 30,000 U.S. hourly workers and close 12 facilities by 2008. GM lost $10.6 billion in 2005, largely because of declining sales and rising costs in North America.

The layoffs are GM's second major jobs-related announcement in a week. GM on Wednesday said it would offer buyouts to its U.S. hourly workers of between $35,000 and $140,000 as part of the plan to cut its hourly work force. GM currently has 113,000 hourly workers. Salaried workers aren't eligible for those buyouts.

GM's severance packages for salaried workers vary by position and level of experience, but employees generally receive one month of severance pay for each year of service at the automaker up to a maximum of 15 months. They also will continue to receive health benefits and will be eligible for outplacement assistance during that time, Herta said. Salaried workers with company vehicles will be able to keep those vehicles for a period of time.

"We're trying our best to treat these impacted individuals with dignity and respect," Herta said.

GM has been steadily shrinking over the last few years as U.S. demand for its vehicles has fallen. The company had 44,000 salaried workers in 2000. GM reduced its salaried payroll by around 2,000 workers last year.

This is the second round of cuts to GM's white-collar work force this year. The automaker laid off 500 contract employees in January, many of them engineers and designers at its technical center in Warren. Contract employees do work for GM but are employed by another company. Tuesday's layoffs only included GM salaried workers.

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Guest Josh

Something more that the article doesnt state is the cuts are coming at 30 locations. So, under 500 employees total from 30 different locations.

Also, if cut, the workers will receive a severance package of 1 months salary per year with the company capped out at 15 years. Hope that makes sense.

Also, GM will be helping workers find a new job via a replacement job program.

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Reportedly this is round 1 of previously announced cuts of around 2700 staff this year, far from the dramatic bloodletting everyone (including the author of this very thread) was predicting. Sure things are bad for GM, but this is nothing that the company hasn't been expecting and preparing-for for years. Part of it is competitive pressure, part is engineering efficiencies, part is GM's new global mindset. H———, with no more US-engineered Ion or Vue (aside from a handful of engineers doing final US-market calibration), that frees up a whole lot of staff who are no longer needed (the best of course will be working on other programs).

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There are a total of app. 2700 candidates that are marked to be released in the near future. That is the number I have been told.

Edited by evok

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Good to see GM targeting the midlevel managers...GM's just so big; it's high time for a bit of delayering.

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Good to see GM targeting the midlevel managers...GM's just so big; it's high time for a bit of delayering.

The 8ths and 9ths managers and directors were this morning.

The 6ths and 7ths appear to be this afternoon.

I was told there were taxi cabs out front at the GM facilities to take the managers home after they drop off their cars and were given the news.

Some whole groups were completely wiped from the org chart.

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So I guess this is a good thing (For GM anyway)?

I'll admit I don't know much about it.

Is it good that we're scaling back engineers when SO much product needs to be flawlessly executed?

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Guest Josh

Not to mention, everybody that is/was let go does not have to turn their vehicles in. They get to use them for as much as a few weeks.

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