Last month, General Motors posted a third-quarter profit of $1.7 billion US. Not bad for a company that, only just two years ago, was almost bankrupt and was saved thanks to a massive government bailout.
Yet its aim is to reduce costs and increase profits even more. GM representative Jay Cooney told the Detroit News: “GM is continually seeking ways to improve our operating performance and reduce complexity to deliver a world-class cost structure and profit margins.”
This, Cooney, says, includes “streamlining the business, so there could be a headcount reduction on a global basis”. This is corporate speak for laying off white-collar workers – initially in small numbers but with more to follow before the end of the year.
Most of the personnel cuts are focused on engineering, product development and corporate operations at GM’s headquarters in Detroit’s Renaissance Center.
The layoffs are part of GM CEO Dan Akerson’s cost-cutting plan, which includes eliminating the group’s worldwide duplicate operations.
"Literally, we have 7,000 more people working on the same amount of work on our competitors”, Akerson told The News in an interview back in June. “It’s just like the Communist Party in China in the 1960s. There has to be a cultural revolution here. The sun never sets on the GM Empire. Substitute 'British Empire.' That didn't work either."
Story References: DetNews
5 Comments:
FOX news: "Akerson is a Communist"... LOL
Akerson need only look in the mirror to find the highest priority WTF candidate. The man is an idiot child.
Akerson is the Hank Williams of automotive...he means well but he just doesn't get it right and sounds like a complete tool every time he talks.
From the 'I'm not a car guy' to 'I'm not about the details' he's a funny sound bite waiting to happen. Add the fact he looks like someone's wannabe hip grandpa watching a rap video (puzzled but acting like he's into it for fear of seeming like a square) and you have someone who probably won't be around in 18 months. Oh wait, yes he will so he can take credit for the turnaround bailout then disappear with a multimillion dollar pension.
He is no Mulally.
And one last thing: how is a company that was salvaged from bankruptcy by the government, able to turn a profit in the billions while the government lost money on the 'investment'....something doesn't sit well with me and it just shows that the rich get richer, when they fail they are bailed out and then it all happens again.
GM should be in hock to the government in perpetuity, making up an losses that were suffered and maybe, heaven forbid, provide some positive ROI. Wasn't that the point of the bailout? To eventually make the $ back and maybe turn a profit for the tax payer. Don't let the tail wag the dog people!
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I think the guy is right this time. GM is a corporate entity, not a welfare state. The cuts at the Ren Cen are long overdue.
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