GM Planning To Boost Profits By Cutting White Collar Jobs

Hackett Group, based in Miami, will help identify opportunities for cuts and efficiency improvements at headquarters and elsewhere in North America, said the people, who asked not to be identified revealing private plans. GM has been trimming engineers and other white-collar staff, said Jay Cooney, a spokesman, who declined to comment on whether the Detroit-based automaker had hired Hackett Group.

Chief Executive Officer Dan Akerson has been wringing out costs in recent months as he pushes the automaker to improve margins. The goal is to beat Ford Motor Co. (F)’s forecasted earnings before interest and taxes of 7 percent of sales and target Hyundai Motor Co. (005380)’s 10 percent. GM won’t use mass cuts or buyouts as it did before its 2009 bankruptcy, Cooney said.

“We are streamlining our business, looking for efficiencies, and to this extent, there will be some headcount reductions and it will be on a global basis,” Cooney said in an e-mail. “GM is continually seeking ways to improve our operating performance and reduce complexity to deliver a world- class cost structure and profit margins.”
 

Joe_Limon - 12/21/2011 1:00:49 PM

+2 Boost

Cutting out excess white collar jobs will allow the company to operate more efficiently and respond quicker to the market. I approve!

Agent009 - 12/21/2011 1:55:05 PM

+1 Boost

I also bet the UAW has no problems with that move either.

monster - 12/21/2011 1:47:38 PM

+1 Boost

Don't cut down on engineers.

Joe_Limon - 12/21/2011 1:59:51 PM

-2 Boost

cutting down on engineers wouldn't reduce the amount of engineering hours put into the vehicles, it would simply require outsourcing of more hours to specialists who have far greater experience as they already help out with the other manufacturers.

Agent009 - 12/21/2011 4:14:54 PM

+1 Boost

It is an interesting concept to cut to the bone while you sales are rising. Most companies hire more and better talent to expand the lead.

truckman - 1/8/2012 3:03:14 AM

+1 Boost

I am one in believing that a good product comes from good engineering, the white collar people aren't the designers, they just take the credit, then again with good spin doctors you could sell a lot, but not forever, there are many informed buyers, especially now with the Internet educating everyone, it is changing the world, I say cut the CEO's and pay the engineers more, they are the reason everyone is there to start with.

truckman - 12/22/2011 3:22:37 AM

+1 Boost

Trimming the fat, the white collar is the trans fat , you can't have too much of it or it will kill you, the union guys make a lot, I would love to see the numbers of who makes what, union/white collar %...