General Motors announced on Friday the layoff of approximately 1,000 employees as part of its ongoing cost-cutting and restructuring efforts.
The move aims to help the automaker realign its priorities amid shifting market conditions, including weaker U.S. sales and a challenging business environment in China, CNBC reported.
The layoffs, which were communicated via email to affected employees, span across GM’s business operations, with the majority of cuts occurring at the company’s global technical center in Warren, Michigan, located near Detroit. A small number of hourly workers were also impacted.
A source familiar with the decision noted that some layoffs were due to poor performance, while others were part of a broader review of GM’s business strategy. This realignment is aimed at optimizing operations and increasing efficiency in response to slower-than-expected consumer adoption of electric vehicles and other market pressures.
In addition to the workforce reductions, GM is targeting $2 billion in fixed cost savings this year as part of its broader strategy to navigate current economic challenges. The company is also recalibrating its “all-in” strategy for electric vehicles, which has seen slower progress than initially anticipated.
GM spokesperson Kevin Kelly emphasized that these changes are necessary for the company to remain competitive.
“We need to optimize for speed and excellence,” Kelly said in a statement, CNBC reported.
He added that the company is grateful for the contributions of those leaving and that the layoffs are part of GM’s broader effort to streamline its operations and position itself for future success.
These layoffs come after GM previously laid off over 1,000 employees in its software and services division in August. The company’s global salaried workforce stood at 76,000 at the end of 2023, with about 53,000 of those employees based in the U.S.
The United Auto Workers union, which represents GM’s hourly employees, did not immediately respond to requests for comment. The company’s efforts to restructure come as it faces increasing pressure to adapt to changing consumer demands and technological advancements.
Written with the assistance of artificial intelligence.