FDA to ban flavored e-cigarettes at U.S. convenience stores
House Republicans Choose Rep. Kevin McCarthy as Minority Leader
Drunk Woman Passenger Abuses Air India Crew After Being Denied Alcohol, Held
UK's Labour signals opposition to Brexit deal
$1.5 billion Mega Millions South Carolina victor hasn't claimed, deadline
GM looking to slash salaried workforce, offers buyout to 18,000 employees
03 November 2018, 07:17 | Kelvin Horton
GM Offers Buyouts to 18,000 Workers, Months After Warning About Layoffs Over Trump's Tariffs
As General Motors reported a healthy $3.29 billion third-quarter profit, the Detroit automaker ramped up its cost-cutting efforts by offering buyouts to 18,000 white-collar workers in both the United States and Canada.
"We sent a letter to employees saying any salaried employee in North America with 12 years or more experience will have the opportunity to take a voluntary severance program", GM spokesman Pat Morrissey said.
GM also said its GM Financial business would initiate a $375 million dividend payment to the parent company in the fourth quarter, ahead of the 2019 target. Terms of the buyouts weren't released.
The voluntary severance program was announced shortly after the company's third-quarter earnings report where it reported an operating profit of $2.5 billion and 10.2% profit margins in North America, The Detroit News reports.
"We are doing this while our company and economy are strong", the company said in a statement.
The automaker is making the cuts in response to rising commodity costs, said CFRA analyst Garrett Nelson. However, they typically occur when a company is restructuring or going through a decline.
GM has cut production at auto plants over the last two years and its hourly workforce fell by 4,000 workers last year, according to GM's annual report.
GM also cited increasing material costs caused by new tariffs on foreign metals imposed by the Trump administration.
For Detroit's automakers, rising materials costs caused by new tariffs on foreign metals imposed by the Trump administration are converging with a slowly deflating US market and a sharper falloff in China, the world's largest auto market. Ford, however, has an older product line, and said its net pricing in North America fell by $318 million in the third quarter.
GM's biggest USA rival Ford also is working to reduce its salaried workforce. This week, Ford is holding three days of meetings to discuss ways to flatten the structure of its salaried workforce and get managers to oversee larger numbers of employees. The company was resilient in a declining Chinese market, where it posted record third-quarter income of $865.88 million from July through September. That result was in spite of the sharpest industry sales drop in almost seven years during September. In an earnings conference call, he told analysts that GM is looking for cuts as it simplifies its business after its exit from Europe.
Alec Baldwin Allegedly Punches Man Over Parking Space
Reports on social media say that Baldwin screamed at the police as they arrested him, but the NYPD has not confirmed this. Apparently, Baldwin's buddy was holding the parking spot near 10th Street and 5th Avenue when the other man took it.
Aamir Khan gives Shah Rukh Khan's Zero a big thumbs up
Thank you for being family and for all the memories ...and here's to many more! "May Zero be your biggest and hugest blockbuster". Filmmaker Karan Johar wrote: "Happy birthday bhai!" Shah Rukh Khan struck his signature pose as fans cheered on.
Saudi sisters found dead stayed at luxury hotels
Saudi Arabia's Consulate General in NY said in a statement that it had "appointed an attorney to follow the case closely". Investigators say Tala and Rotana Farea made stops in Washington D.C. and Philadelphia before coming to the city.
Samsung might remove Headphone jack from Galaxy S10
The hinge will also feature an internal gear mechanism that allows the user to fold out the screen at different angles. Samsung is expected to launch the Galaxy S10-lineup early next year and looks like Samsung is packing some surprises.