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General Motors to layoff 900 employees with Arizona facility closure

General Motors Headquarters

General Motors has said the closure of its Arizona IT Innovation Center in Chandler will affect around 940 employees.

Those people will lose their jobs as of October 31. 

The automaker said this decision is part of its ongoing transformation to align its US Innovation Center footprint and IT resources.

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Workers in the software-defined vehicle teams will remain in Arizona.

However, those hit by the closure can apply for open positions within the company.

Employees received news of the closure during a 30-minute staff meeting, leaving many in shock and uncertainty about their future. 

Erik Gronseth, one of the employees, expressed mixed feelings, as he was among those not directly affected. 

"Not much forewarning"

He said: “There wasn’t too much of any forewarning of what to expect. 

“Some of us jokingly thought maybe this was going to be along the lines of ‘Meet some new co-workers,’ but it’s unfortunate that it turned out the way it did.”

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He said the company informed hundreds of employees during a 30-minute meeting that they’d lose their jobs, but he is not one of them. 

Gronseth added: “That was a bit of relief, bittersweet relief, as we knew a lot of people.”

Employees will receive severance packages and outplacement services based on their tenure with the company.

Micah Miranda, economic development director for the city, said the closure “came as a complete surprise."

“We’ve recently been working with their local team about higher education partnerships, mentoring, and a promotional video highlighting Chandler’s Price Corridor. 

“With this unfortunate news, we plan to work closely with our workforce development partners to assist with employment opportunities for those impacted.”

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