GM is shedding 1,000 staff as a part of restructuring and value chopping

The GM logo is seen on the facade of General Motors' headquarters in Detroit on March 16, 2021.

Rebecca Cook | Reuters

DETROIT – General Motors The company laid off about 1,000 employees on Friday as the automaker seeks to cut costs and realign priorities amid changing market conditions, according to a person familiar with the decision.

The layoffs, which were announced to those affected on Friday morning, affected the entire company. Some were due to poor performance, while others were part of a review to reorder the automaker's priorities, according to the person, who agreed to speak about the decision on condition of anonymity.

A majority of the affected employees were in suburban Detroit at the automaker's global technical center in Warren, Michigan, the person said. The layoffs also included a small number of hourly wage workers.

The company is targeting $2 billion in fixed cost cuts this year as it grapples with declining U.S. sales, a deterioration in business in China and a change to its “all-in” electric vehicle strategy amid slower-than-expected adoption among the consumers are struggling.

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GM, Ford and Stellantis stocks.

A GM spokesman confirmed the layoffs but declined to disclose the total amount.

“To win in this competitive market, we must optimize for speed and excellence,” GM spokesman Kevin Kelly said in an emailed statement. “This includes working efficiently, ensuring we have the right team structure in place and staying focused on our top priorities as a company. As part of this ongoing effort, we have made a small number of team downsizings. We are grateful to those who have helped.” Build a strong foundation that will position GM to lead the industry in the future.

Friday's layoffs come as more than 1,000 employees were laid off in GM's software and services organization in August.

At the end of last year, GM had 76,000 employees worldwide. This included around 53,000 US employees.

The United Auto Workers union, which represents the automaker's wage workers, did not immediately respond for comment.

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