Business Case Studies, HRM / Organizational behaviour Case Study, GM's Employee Separation Plan,Overwhelming Response from Employees

print page
Tell A Friend

Case Categories

Share |

HRM / Organizational behaviour Case Study

Case Title:

GM's Employee Separation Plan: Overwhelming Response from Employees

Publication Year : 2006

Authors: Rudrajit Mishra, Abhijit Sinha

Industry: Automobiles


Case Code: HRM0035K

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study

General Motors Corporation (NYSE:GM), the world’s largest automaker was founded in 1908 in Flint, Michigan of US. In 2006 GM was in a horrible tangle as the company lost $10.6 billion in the previous year (2005). To counter this GM had initially planned for organizational restructuring. As a part of the organizational restructuring the company planned 30,000 job cuts and close down of 12 plants by 2007. The plan of manpower reduction comprised with the hourly workforce reduction of 6,500 hours in 2005 and estimated replacements, including Delphi flow backs. GM management declared its plan expecting to reduce 30,000 blue-collar jobs by Jan.1, 2007 which was about two years ahead of schedule. On Monday, 26th June, 2006 GM’s management announced that 35,000 workers had already opted to leave the company voluntarily, surpassing initial targets and allowing the automaker to increase its targeted savings to US $8 billion annually by the end of 2006. The overwhelming response of the employees for the accelerated separation plan surprised many people, including GM’s management

Pedagogical Objectives:

  • To analyse the problems faced by the world’s largest automobile maker
  • To understand the efforts made by GM to turnaround itself
  • To get an overview of the global automobile industry
  • To debate whether GM’s efforts would pay off.

Keywords : General Motors (GM), Organisational restructuring, Manpower rationalisation,HRM Case Study, Early separation, Delphi flow backs, Voluntary retirement, Accelerated separation, Detroit, Lay-off, Other post employment benefits fund (OPEB), Pension and benefit fund, Automobile industry, The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), International Union of Electronic, Electrical, Salaried, Machine and Communication workers of America (IUE-CWA), Blue-collar


  • Introduction
  • Company background
  • Industry overview
  • Gm's job cut: part of revival strategy

    • Early separation plan
    • Overwhelming response from the employees
    • Unions reaction
  • Road ahead

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»

Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501203, Telangana, INDIA.
Mob: +91- 9640901313,

©2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap