hr: Money

Investing and Personal Finance

GM Lays off 3,500 workers, as it removes one shift

Posted by BJ Park on April 28th, 2008

The layoffs continue to affect the people, as GM was the next in line to cut down it’s staff due to drops in it’s sales caused by the prices of Fuel, and American’s lower spending power.

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Creative Commons License Photo Credit: heavenboundalso

Four factories in North America were subject to the cut, as GM removed one shift from each, bringing the total number of laid off workers to 3,500. The vehicles that are slated to have reduced production are the SUV’s, and pickup trucks, with the planned reduction in capacity being 50,000, and 88,000 respectively.

The cuts will affect factories in Pontiac and Flint, Mich., and Oshawa, Ontario, as well as the full-size SUV plant in Janesville, Wis.

GM said however, that workers will get unemployment benefits, and that added to their supplemental pay, will make up a huge amount of their regular income.

It’s not surprising that GM is cutting back on SUV production. Evers since the fuel hike, Americans have ben wary of vehicles that guzzle fuel. Indeed, Troy Clarke, GM North America President admitted as much.

This trend of fewer SUV’s and pickup trucks has been developing over three year now. The focus is now on normal cars. However, in recent months, the trend has become more drastic. Gas prices have now reached $3.60 per gallon.

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