General Motors (GM) has made a sad announcement. At the end of 2024, it will lay off 1,965 workers from its Kansas assembly plant. The company has warned of this drastic decision in a statement called “Adjustment and retraining of workers”, released in early December. It also advanced that there will be significant cuts in its plant and in its production in the long term.
Layoffs in two phases
The strategy used by General Motors for the layoffs will be carried out in two distinct phases. This will affect both full-time and temporary employees. According to a GM spokesperson, the first round of layoffs began to take place last November 18 and affected 686 full-time workers, who will face temporary layoffs. On the other hand, there were 250 temporary workers who had to terminate their contracts permanently.
The next step to be taken by the company is a wave of layoffs due to take place on January 12, 2024. During this phase, an additional 759 full-time employees will be laid off on a temporary basis, further impacting the production force at the Kansas headquarters plant.
Pause in Cadillac XT4 production
One of the main reasons behind these layoffs at General Motors is the pause in production of the Cadillac XT4. Earlier this year, the company announced that it would halt production of this luxury SUV manufactured at the Fairfax plant in January 2025. Such a decision would result in temporary job losses until the company resumes production in late 2025. In that time, the plant is expected to manufacture both the Cadillac XT4 and Chevrolet Bolt EV on the same assembly line.
In turn, GM plans to invest heavily in the Fairfax plant. This is a move as part of its strategy to transition to electric vehicle production. In a statement to Reuters, a company spokesman said that GM will invest more than $390 million in the Kansas plant.
To facilitate this transition, the company will need to install new machinery and tooling. As a result, General Motors decided to move forward with temporary layoffs of workers until production resumes. The spokesperson confirmed that the company expects full production with the renovated facilities to restart in mid-2025.
Cuts at GM set off alarm bells for workers
Notably, the layoffs in Kansas come just months after General Motors implemented another round of cuts. In August, the manufacturer laid off more than 1,000 salaried employees in various departments. This included areas such as software and services. As they explained, it was an overall effort to optimize operations as part of their transition to electric and advanced technology vehicles.
All this sets off alarm bells among General Motors workers. And while these layoffs are part of GM’s strategy to modernize its operations, in 2025 the plant is expected to start operating with the addition of employees. In this case, production would focus on high-demand models such as the Chevrolet Bolt EV, making it a crucial facility for the company.
Despite all the current challenges, GM has stated its commitment to the long-term future of the Fairfax plant. In the same statement to Reuters, the company spokesperson reiterated that the $390 million investment is designed to make the silver a key player in the company’s electric vehicle creation. As such, they will require the addition of many more workers.
