Introduction
General Motors (GM) announced in official documents submitted to the state that it intends to lay off more than 1,300 employees in Michigan over the coming months. These layoffs are due to GM’s discontinuation of the Chevy Bolt and Chevy Camaro models. The layoffs affect workers at GM’s Orion Assembly Plant in Michigan and the Lansing Grand River Assembly Plant in Lansing, Michigan.
Details of the Layoffs
The reductions were announced at the Orion Plant near the end of October, affecting 911 workers. An additional 34 layoffs were announced this week following the ratification of a collective bargaining agreement. The layoffs are expected to begin in two phases in January. The Orion Plant will be retooled to produce electric vehicles and is expected to return to production in 2025.
Potential Job Opportunities
According to documents submitted to the Michigan Department of Labor and Economic Opportunity, GM stated: “There may be job opportunities at other local GM plants for most, if not all, affected employees.”
Impact of Layoffs on the Lansing Plant
GM expects to reduce the workforce at the Lansing Plant by 369 employees. While the discontinuation of the Camaro model was previously announced, the details and extent of layoffs at the Lansing facility remain unclear, as Cadillac vehicles are also produced there.
Impact of Layoffs on GM Shares
GM shares fell more than 1% to $35.81 at the end of trading on Friday, just one day after rising by 6% based on news of the layoffs in its Cruise division.
Conclusion
General Motors plans to lay off more than 1,300 workers in Michigan due to the discontinuation of the Chevy Bolt and Chevy Camaro models. However, the company expects to provide job opportunities at its other local plants for most affected employees. GM also anticipates a reduction of 369 employees at the Lansing Plant. The company’s shares fell by more than 1% following the announcement of the layoffs.
Source: https://www.investopedia.com/gm-to-lay-off-1300-workers-in-michigan-8416608
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