General Motors is planning to layoff at least 4,000 salaried workers in North America starting Monday ahead of the company’s fourth-quarter earnings report.
The reductions come as the largest U.S. automaker undergoes a massive restructuring announced by CEO Mary Barra in November. GM is halting production at five plants in North America and cutting 14,000 jobs as it realigns its workforce and plants to produce more electric vehicles.
GM offered buyouts to 17,700 employees in North America with at least 12 years of service in November, according to a document obtained by CNBC at the time. The company was aiming for 8,000 voluntary buyouts, the company previously confirmed. About 2,250 workers accepted severance agreements by Nov. 19, the company previously confirmed. Roughly 1,500 contract jobs have since been eliminated, according to one of the people briefed on the layoffs.
That leaves roughly 4,250 salaried workers and 6,000 hourly employees targeted for layoffs. The company said in November that half of the hourly workers were in Canada with the other half in the U.S.
GM’s reorganization is expected to save the company about $6 billion by 2020, with half of those savings realized by the end of 2019.