GM
GM will hand out profit sharing checks upwards of $10,750 to hourly workers despite laying off 4,000 employees recently. he General Motors logo on the world headquarters building is shown September 17, 2015 in Detroit, Michigan. Mary Barra, Chief Executive Officer of General Motors, and Mark Reuss, President of GM North America, held an Employee Town Hall Meeting and a question & answer session with the news media today to discuss GM's $900 million settlement with the Justice Department over GM's ignition switch recalls. Getty Images/Bill Pugliano

Amid layoffs of more than 4,000 workers, GM (GM) will dole out profit-sharing checks to hourly workers in the amount of $10,750.

The profit-sharing amount is a reduction from last year’s $11,750 per worker, based on North American pretax profits. The 2018 pre-tax profits for GM came in at $10.8 billion, down from the $11.9 billion of 2017.

The reduction in profit sharing was a result of costs related to restructuring and its ignition switch issue, the company said. A total of $1.3 billion was earmarked for restructuring, according to GM CFO Dhivya Suryadevara.

In 2019, another $2 billion is expected to be needed for restructuring efforts, including the layoff packages of 2,250 salaried workers and involuntary severance for some 4,000 employees, the company said.

According to Suryadevara, GM’s profits were up based on a “flawless” launch of its 2019 Chevrolet Silverado and GMC Sierra pickup trucks as well as strong SUV sales and record U.S. transaction prices, the Detroit Free Press reported.

Suryadevara also told the Detroit Free Press that GM was disciplined in its costs for 2018.

“We plan to build on these 2018 results in 2019 and beyond,” she said.

A total of 46,500 employees will receive the profit-sharing checks, according to GM.

“When GM delivers good business results, our eligible hourly employees in the U.S. share in the company’s success,” Mary Barra, GM’s CEO and chairman said in a statement. “To build on our performance, we must continue working together to deliver strong safety, quality and productivity results.”

In 2018, GM had global revenues of $147 billion, up from the projection by analysts of $142.3 billion. This was an increase of 1 percent from 2017.

Despite GM’s strong revenue numbers, the company laid off more than 4,000 workers and will downsize its factory footprint. The company is focusing its efforts on reorganizing into a technology company by developing electric and autonomous vehicle segment.

According to GM since 2010, its U.S. hourly workers have received more than $80,500 in profits sharing payments.

Shares of GM were up 1.55 percent as of 4:23 p.m. ET on Wednesday.

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