General Motors plans to lay off 4,000 salaried works beginning Monday, CNN reported. This is part of the company's previously announced 15 percent workforce reduction that was announced back in November. Along with letting workers go, GM is also closing four manufacturing plants in the United States and another in Canada.
The company made the decision as part of a strategic move to free up $6 billion annually. That money will then be used to invest in new technology, including electric and self-driving cars as well as a ride sharing service. By making these cuts, GM believes they can save $2.5 billion in 2019 and a total of $6 billion by next year.
When GM CEO Mary Barra made the announcement, she met with legislators on Capitol Hill about why her company planned to close four American plants. At the time, legislators from those states were upset with the decision.
"Reminds me of a race to the moon but this commands and inspires the innovation agenda to create jobs and lead industrial global economy," Rep. Haley Stevens (D) said during the meetings. "At same time, unions need bigger seat at table and we need a plan to address painful job loss."
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GM hasn't said exactly when the other 2,000 salaried and contract jobs will be cut, although it will happen sometime this month.
"We are not confirming timing," General Motors told The Detroit News in a statement. "Our employees are our priority, and we will communicate with them first."
Automotive industry outlets, including Automotive News, has referred to Monday's layoff plan as "Black Monday," which are expected to begin at 7:30 a.m. and continue throughout the day.
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