Reposted: Like or dislike, it contains more intellectual information that MOST will ever know.
Doing it on purpose yes, but not for the reasons you’ve stated. It’s been in the works for a very long time. These actions are just part of the overall process they started long ago.
They started with the 2020 transformation, open floor layouts and redesign of the campuses, in about 2015. The open floor layouts were determined the best layout to house the most people if there were a need to downsize the company footprint. They knew they would need this, despite the overwhelming response against it.
In 2015, they had started a mass hiring of 30%-40% salaried staff all the way through 2018, so the company became VERY bloated. One of the reasons were to recycle the age of the working pool, knowing that downsizing would come some point in the future. The other, the change of direction from propulsion to EV, programs were canceled and so resources needed to be cut. It likely was not random either, but rather predetermined, and a perfect excuse. One might speculate that going to EV was already predetermined, since all the other automakers had already started to cut sedan production - and it was the direction of the future. It would seem as if each automaker were following suit one behind another, in what might seem to be a coordinated and conspired manner. Why might they do this? To bring in the next evolution of the vehicle, EVs, and it’ll likely be forced upon an unwanting public. Start with sedans, then the trucks and SUV’s will follow after.
So in 2018, the company started the reduction process by offering buyouts targeted strictly to it’s aging crowd, 12 years of service or more. There are not enough takers. Because it’s very difficult to remove salary personnel, and so many of them at once, the only way to get rid of so many is by going through contract personnel first. The general trend is to eliminate contract before you eliminate salary. So rather than peeling back the band-aid, GM decided to rip it off entirely, in a chaotic way. All contract were eliminated to get at the salary ranks. Once they right size the salary staff through reductions, they will fill the contract ranks once again, at a ratio of about 80/20. This is how they are recycling the age and talent of the company, and right sizing the company for what comes next.
It’s not hard to see that we’ve enjoyed economic prosperity for quite some time. Like all business cycles, the pendulum swings both ways. In 2008, Rick Wagner responded to an economic crisis, and we witnessed the aftermath of that. With GM posting year over year record profits, MB is doing things differently, taking advantage of a plan set in motion long ago while she can, acting proactively to what is coming. But she’s running out of road. Why might she be reducing at a time of economic strength, and as quickly and irrational as it may seem? To get ahead of the economic fallout that is coming, and it IS coming soon. She is transforming the company, and leaning it out to whether what is about to approach.
I know it’s difficult to take it on blind faith, and even if you chart, it’s difficult for most to see this unless you know where specifically to look, and what information to look at. The answer does exist within the stock charts - and it's hidden in plan sight. 2001 and 2008 were very difficult times for ALL major corporations and their stocks. This coming decline will likely make both of those seems small in comparison. The stock market is the perception of wealth and prosperity, and when it goes, you can imagine the economic fallout that comes with it. 2001 was bad. 2008 was worse, and this one will be greater. I’ll say no more on that.
So to answer your question, no it’s not like that. The idea is very much larger than what you are seeing. At the end of the day, we are ALL pawns in a much larger game of chess. Think larger. See the entire picture, not just pieces.