American automakers General Motors are reportedly set to lay over 4,000 workers off this week.
According to Detroit News, the company will show around 4,000 salaried workers the door on Monday, with the layoffs to be part of a 15 percent reduction in white-collar jobs in North America. They have also announced the decision to shut down four plants in the U.S, as well as one in Canada.
GM remains keen on reducing cost and they're looking to free up $6 billion by 2020, with which to invest in a new generation of vehicles such as electric and self-driving cars.
The automotive giants are also seeking to develop a ride-hailing service that will allow them to make money by selling transport services instead of vehicles.
It is not clear which departments will see cuts first but the company aims to reduce their global executive workforce by 25 percent and it is expected that there will be more layoffs to come.
"We are not confirming timing," they said in a statement. "Our employees are our priority, and we will communicate with them first."
The automakers are said to be keen on repositioning themselves for a future that they see as driverless and free of emission, although they continue to invest in profit-generating pickup trucks and SUVs.
The sting from a major restructuring at General Motors and its planned closings of five North American factories in the coming months is putting thousands of jobs at auto parts suppliers at stake, as well. https://t.co/Y4zkDkttbo pic.twitter.com/BBAFGuLL0K— ABC News (@ABC) February 3, 2019
"Many investors see GM as a ‘self help story’ that can cut costs faster than the pace of industry headwinds, leaving margins and cash flow supportive of strong cash flow and return of capital. We do not subscribe to this view," Wall Street investor Morgan Stanley Adam Jonas said in a note to the Detroit auto show press preview. "We believe cost savings will be given back to the consumer in price …, something with which this industry has numerous precedents."
GM is due to report financial results this coming Wednesday and they are expected to reveal lower earnings for last year.