Yesterday, our man Steph Willems chronicled the details of a memo obtained by The Detroit News in which Ford brass promised 2019 will be a pivotal year for the company. Amongst the revelations, CEO Jim Hackett said a job cull is the price it must pay for adding so many new employees after the recession.
That was confirmed today, with news that some salaried workers in departments such as accounting and human resources will get their walking papers later this year.
It’s T minus 11 days before Congress does the thumbs-up thumbs-down thing on the artist formerly known as the world’s largest automaker. GM is up shit creek without a paddle. The United Auto Workers aren’t going to agree to parity with the transplant assembly workers, as required. The bondholders aren’t going to exchange debt for equity, as required. The company doesn’t have a clue what to do about its brands or products, as required. There is no way whatsoever for GM to prove to your elected officials that it has a hope in hell of repaying the $13.4b loans already made—never mind the $100b or so needed to keep the ailing American automaker in business for another year. So GM CEO Rick Wagoner is doing the only thing he knows how to do, that he can do: cutting expenses. This time, it’s white collar workers for one simple reason: that’s all that’s left. Bloomberg tells of the $14m per year CEO’s decision to throw his remaining management to the wolves . . .
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