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GM is reinventing itself. It’s cutting 15% of its salaried workers and shutting 5 plants in North America

11/26/2018

Summary

GM has announced that it will be cutting 15% of their salary workforce and closing five plants in North America. GM is doing well overall but sales have fallen in North America and Asian markets. Therefore, it is adapting with the times and making moves now while the company is in good shape so it won’t be in a position to need to make harder decisions in the future. These changes will help the company be more efficient and save $6 billion by 2020.

Key Points

  • GM will be cutting 15% of their salaried workforce
  • 5 facilities will be closing down
  • They are making changes now so they can avoid larger changes in the future
  • GM is striving to adapt to making cars more safe and better for the environment

Discussion Questions

  1. Would you say that GM moving in the right direction with these decisions?
  2. What does GM have to do to stay relevant?

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