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Posts Tagged ‘job cuts’

Just four days after it reported a 45 percent plunge in U.S. sales, including large drops for locally produced crossovers and Cadillacs, General Motors Corporation is planning immediate job cuts in order to remain competitive within their industry.

“It’s going to be a very bad earnings announcement,” said David Cole, chairman of the Ann Arbor-based Center for Automotive Research. “It’s going to be bad enough to get everyone’s attention.”

The official earnings results – and the expected cutbacks – will be released around 11 a.m. in a broadcast to employees. GM has about 6,000 workers in the Lansing area at the Lansing Grand River and Lansing Delta Township assembly plants, Lansing Regional Stamping plant and a service parts warehouse.

General Motors will announce the report of official earnings, as well as the expected layoffs, around 11:00 AM in a company broadcast to employees.  General Motors currently has roughly 6,000 workers in the Lansing area.  The Lansing Grand River plant makes the Cadillac CTS, STS and SRX. The Delta Township plant makes the Buick Enclave, GMC Acadia and Saturn Outlook.

Many GM workers say they’re worried about the coming announcement from the company’s top executives. General Motors CEO Rick Wagoner says he’ll announce important changes to company operations when General Motors releases its third-quarter financial results today.

General Motors Corp., reportedly on the verge of releasing enormous third-quarter losses and more cost-cutting measures, delayed this morning’s scheduled announcement.  Bloomberg News is reporting that the sale of General Motors’ stock also was halted shortly after 11 a.m. as the company prepares to disclose the earnings and cutback results.  Stock last traded at at $4.83 per share this morning after closing on Thursday at $4.80 per share.

GM’s use of $6.9 billion in cash last quarter pushed its reserves closer to the $11 billion minimum that the automaker says it needs to pay its bills.  Today’s outlook was the bleakest yet from the automaker, which has lost almost $73 billion since the end of 2004. As recently as Oct. 24, GM had said bankruptcy “is not an option.”