Management consultant Hackett Group has recently been hired by General Motors Co. to help in spotting ways to reduce its number of white-collar jobs, according to two insiders. However, just how much will be cut has yet to be determined. The Miami-based Hackett Group will assist in finding out what to do in order to achieve cuts and improvements in efficiency at its headquarters as well as other parts in North America.
GM spokesman Jay Cooney said that GM has been reducing its number of engineers and other white-collar staff members. However, he will not confirm if Hackett Group has been hired. In the past few months, GM CEO Dan Akerson has been lessening costs so that it could boost its margins. GM has set a target to surpass Ford Motor Co.'s predicted earnings before interest and taxes of 7% of sales and target.
Notably, Hyundai Motor Co. anticipates a 10% figure. Cooney explained that GM won’t utilize mass cuts or buyouts as it did before it entered bankruptcy proceedings in 2009. He said that the company is “streamlining” its business and aiming to be more efficient.
That is why it has plans to reduce its workforce globally. He added that GM continues to find methods to enhance its operating performance and lessen its complexity to offer a world- class cost structure and profit margins. Hackett Group spokesman Gary Baker declined to comment if the company is working for GM. [source: Bloomberg]