General Motors has announced that it will be forced to implement job losses because only 6,000 GM blue-collar workers have taken the latest round of early retirement and buyout offers. General Motors, which has 54,000 factory workers, has stated that it wants to slash its workforce to save labor costs and survive the economic downturn.
Via the Star-Telegram
"GM has about 54,000 factory workers and wants to end the year with 40,500, a cut of about 13,500. Monday's report means that about 7,500 too few workers took the offers, setting the stage for more layoffs."
The job losses couldn't have come at a worse time for workers in the auto industry. Slow sales, cautious consumers and bankruptcy has left that sector a no-man's land for workers seeking employment. No doubt this new round of job losses will negatively impact those cities most dependent on the auto industry and many experts believe that the job losses could have a domino effect that reverberates throughout the economy. Foreclosures, evictions, repossessions and personal bankruptcies will most likely rise in the communities where these job losses are located; but retailers and others in the business sector may also suffer from decreased sales because of the job losses and many weaker firms may need to file Chapter 11 bankruptcy.