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General Motors (GM) Shuts Innovation Center & Cuts Jobs
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General Motors Company (GM - Free Report) is set to trim 940 workers after the closure of the Arizona IT Innovation Center. The news came a week after the legacy automaker announced that it had notified 200 engineers elsewhere about the termination of their positions.
The company notified 1,029 non-union employees at the Arizona IT Innovation Center about the job cut, followed by a company-wide email.
Per the email obtained by the Detroit Free Press, Stacy Lynett, vice president of Information and Digital Technology GM, wrote that the company decided to cease information and digital technology operations at the Arizona IT Innovation Center at the end of October. The move will help the company optimize its innovation center footprint and gain the efficiency and effectiveness it needs.
Lynett added that all information and digital technology jobs are being eliminated at the center to streamline operations and allow GM to focus on its growth areas. Laid-off employees can apply for other openings at the company and the company will provide outplacement support. Employees who have worked for at least one year will be eligible for a severance package.
Kevin Kelly, spokesperson GM, confirmed the job cuts and stated that some employees who work on vehicle software will be retained, while the company will let go of the rest of the 940 employees. He said that the purpose of closure is not cost-cutting but rather to streamline efficiencies.
Kelly said General Motors is rationalizing the number of IT innovation centers it has in the country. The company decided to retain 3 of the IT innovation centers. But, due to some redundancies in efficiency, the company decided to remove one of the centers.
Per General Motors’ website, The Arizona center, located in Chandler, which opened in 2014, supports the company’s IT needs, including web technologies, end-user applications, dealer and factory systems and vehicle technology.
Other IT centers of the company are located in Warren, Michigan; Austin, Texas and suburban Atlanta.
Per Lynett’s email, General Motors will be formulating a plan to transition some of the work done at the Arizona IT Center to other centers.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 126.9%, respectively. The EPS estimate for 2023 has moved north by $1.74 in the past 30 days. The 2024 EPS estimate has moved up by $1.55 in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings implies a year-over-year increase of 9.4% and 25.3%, respectively. The EPS estimate for 2023 has moved up by 39 cents in the past 30 days. The 2024 EPS estimate has moved north by 43 cents in the past 30 days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings implies year-over-year growth of 17.3% and 29.4%, respectively. The EPS estimate for 2023 has moved up by 7 cents in the past 30 days. The 2024 EPS estimate has moved north by 9 cents in the past 30 days.
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General Motors (GM) Shuts Innovation Center & Cuts Jobs
General Motors Company (GM - Free Report) is set to trim 940 workers after the closure of the Arizona IT Innovation Center. The news came a week after the legacy automaker announced that it had notified 200 engineers elsewhere about the termination of their positions.
The company notified 1,029 non-union employees at the Arizona IT Innovation Center about the job cut, followed by a company-wide email.
Per the email obtained by the Detroit Free Press, Stacy Lynett, vice president of Information and Digital Technology GM, wrote that the company decided to cease information and digital technology operations at the Arizona IT Innovation Center at the end of October. The move will help the company optimize its innovation center footprint and gain the efficiency and effectiveness it needs.
Lynett added that all information and digital technology jobs are being eliminated at the center to streamline operations and allow GM to focus on its growth areas. Laid-off employees can apply for other openings at the company and the company will provide outplacement support. Employees who have worked for at least one year will be eligible for a severance package.
Kevin Kelly, spokesperson GM, confirmed the job cuts and stated that some employees who work on vehicle software will be retained, while the company will let go of the rest of the 940 employees. He said that the purpose of closure is not cost-cutting but rather to streamline efficiencies.
Kelly said General Motors is rationalizing the number of IT innovation centers it has in the country. The company decided to retain 3 of the IT innovation centers. But, due to some redundancies in efficiency, the company decided to remove one of the centers.
Per General Motors’ website, The Arizona center, located in Chandler, which opened in 2014, supports the company’s IT needs, including web technologies, end-user applications, dealer and factory systems and vehicle technology.
Other IT centers of the company are located in Warren, Michigan; Austin, Texas and suburban Atlanta.
Per Lynett’s email, General Motors will be formulating a plan to transition some of the work done at the Arizona IT Center to other centers.
Zacks Rank & Other Key Picks
GM currently carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space are Oshkosh Corporation (OSK - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Gentex Corporation (GNTX - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 126.9%, respectively. The EPS estimate for 2023 has moved north by $1.74 in the past 30 days. The 2024 EPS estimate has moved up by $1.55 in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings implies a year-over-year increase of 9.4% and 25.3%, respectively. The EPS estimate for 2023 has moved up by 39 cents in the past 30 days. The 2024 EPS estimate has moved north by 43 cents in the past 30 days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings implies year-over-year growth of 17.3% and 29.4%, respectively. The EPS estimate for 2023 has moved up by 7 cents in the past 30 days. The 2024 EPS estimate has moved north by 9 cents in the past 30 days.